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By MarketWatch
LOS ANGELES (MarketWatch) -- Volkswagen AG said Monday that it is studying partnership opportunities with Chinese industrial firm BYD Co. for producing hybrid and battery-powered vehicles, according to a report.
"Hybrids and electric vehicles will play an increasingly important role," Volkswagen board member Ulrich Hackenberg said in a statement cited by Dow Jones Newswires. "Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities."
Based in the southern Chinese city of Shenzhen, BYD Co. /quotes/comstock/22h!e:1211 (HK:1211 32.90, +3.20, +10.77%) has risen from obscurity in the past several years to become the world's biggest producer of rechargeable batteries for cellular handsets. The company made news in last fall when Warren Buffett bought a $230 million stake in it. See full story on Buffett and BYD.
Volkswagen /quotes/comstock/11e!fvow (DE:VOW 222.60, -1.22, -0.55%) /quotes/comstock/11i!vlkay (VLKA.Y 62.03, +0.27, +0.44%) /quotes/comstock/11i!vlkpy (VLKP.Y 14.07, +0.72, +5.39%) /quotes/comstock/23s!vkw (UK:VKW 0.00, 0.00, 0.00%) is said to be specifically interested in teaming with BYD on lithium ion batteries for autos. In March, BYD Chairman Wang Chuanfu said his company was in talks to supply batteries to car makers in Europe and the U.S., but he didn't name them, Dow Jones reported.
