BYD says scraps financing JV plan

Updated: 2011-07-06 10:14
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BYD Co Ltd, the Chinese automaker backed by US billionaire Warren Buffet, said it had terminated an agreement to set up a joint venture to provide financing for purchases of automobiles in China.

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In a filing to the Hong Kong bourse on Wednesday, BYD said its joint venture partner, Compagnie Générale de Location d'Equipements, felt the automobile market in China was facing increasing risks and the two firms could not reach a consensus on business strategy.

BYD said the decision would not have any significant impact on its financial position or operations.

The Chinese automaker in June last year signed a contract to set up 80 percent owned joint venture BYD Auto Finance Company Limited with registered capital of 500 million yuan ($77.3 million) in Shenzhen, to provide loans for new vehicle buyers.