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BYD (OTC:BYDDY), the Chinese electric vehicle company, announced on Tuesday that the Warren Buffett backed automaker is working on a potential acquisition of Yi’an P&C Insurance Co, an insurer that was seized by Chinese regulators two years ago as part of a crackdown on financial conglomerates.
Chinese business publication Caixin reported earlier this month, citing unnamed sources, that BYD would fully take over the insurer and would use it to start an insurance business targeting electric vehicles.
“The acquisition is ongoing,” BYD said in a statement on Tuesday, referring to the reported deal. It said it would release more details later.
Electric vehicles are expensive to repair, posing a challenge to automotive insurance providers. Tesla (NASDAQ:TSLA) launched its own insurance affiliate in August 2019, promising rates up to 30% lower than competitors.
Meanwhile, Ford (NYSE:F) is also discussing the sale of its manufacturing plant in Saarlouis, Germany to BYD.
