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Archive for July, 2010

30min Video Tour of ZAP in Santa Rosa, California with CEO Steve Schneider

July 18, 2010 2 comments

A delegation of Japanese business people came to ZAP in early June from Usami Co., a chain of gas stations throughout Japan. This is part 1 of a 3 part series about what’s happening at ZAP with special clips of the Volkswagen, Worldcar, Smart Car, Sam Cree and Xebra with shots of our CEO talking about his background and how he joined up with ZAP. The tour includes our dealer showroom in downtown Santa Rosa. Thankz for watching!

Samyang Optics Takes Delivery of First ZAP Jonway Electric SUV for Korea Taxi, Fleet Market

July 14, 2010 2 comments

ZAP Electric Taxi Answers Korea EV Challenge

Samyang Optics took delivery of the first ZAP Jonway electric SUV.

SEOUL, South Korea, July 14, 2010  — Electric vehicle pioneer ZAP (OTC Bulletin Board:ZAAP.obNews) and Zhejiang Jonway Automobile Co. Ltd. delivered the first electric taxi produced through their China venture, ZAP Jonway, to Korean distribution partner Samyang Optics (Kospi: 008080.KSE).  Several new ZAP electric vehicles will be on display at the automotive engineering technology expo EV KOREA July 14-16, 2010 at the Coex exhibition center in Seoul.

Samyang Optics and ZAP Jonway will showcase new electric vehicles (EVs) they are planning for Korea. The ZAP Taxi will be on display, an electric SUV based on the Jonway A380 with an electric drivetrain designed and integrated by ZAP. The Alias will be on display, a futuristic-looking electric car designed by ZAP and finalist for the Progressive Insurance Automotive X PRIZE, a competition of 100MPG or energy equivalent vehicles with the final taking place July 19-29.  ZAPPY3 personal electric transporters will be scooting around the exhibit.

Samyang Optics and ZAP Jonway have formed a business venture to distribute electric vehicles in Korea as part of the government’s push to commercialize EVs and capture 10 percent of the global market for zero-emission plug-in cars by 2015 with the target of having all-electric vehicles comprise 10 percent of domestic sales of small-size cars by 2020.

Samyang Optics and ZAP Jonway are the official sponsors of EV KOREA, with support from the Korean Ministry of Knowledge Economy, Presidential Committee on Green Growth, Seoul Metropolitan Government, Korea Transport Institute, Electronics and Telecommunications Research Institute, Korea Electronics Technology Institute Korea, Automotive Research Institute, Korea Electric Vehicle Industry Association and others.

EV KOREA was created to harness the growing interest in electric vehicles by bringing together all the key players in the global EV market.  The event is being held concurrently with the New & Renewable Energy and Battery Expo 2010, to create more synergies and maximize business.  EV Korea expects over 100 exhibitors and up to 25,000 attendees.  More information is available at http://www.evkorea.kr.

ZAP is one of the world’s oldest and most experienced electric vehicle providers, having delivered over 117,000 of a broad range of electric vehicles to more than 75 countries since 1994. Additional information is available at http://www.zapworld.com.

Safe Harbor Statement

This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of ZAP’s products, increased levels of competition, new products and technological changes, ZAP’s dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the ZAP’s periodic reports filed with the Securities and Exchange Commission.

Contact:

ZAP USA
Alex Campbell
707-525-8658 x 241
acampbell@zapworld.com

USA Media
Pat Meier-Johnson
+1 415-717-9677
patmeier@patmeier.com

International Media
Ron Theis
+1 248-644-3330
rlt@theis.com

Video, Slide Show of Zhejiang Jonway Auto Manufacturing

July 14, 2010 Leave a comment

Clips from a recent tour of the factory for the Jonway A380 SUV. Jonway Automobile of Sanmen, China is subject of a recent business agreement for majority acquisition, 51%, by ZAP electric vehicles of California. For details on the transaction, click the link below:

https://zapglobal.wordpress.com/2010/07/08/zap-acquires-majority-stake-in-china%E2%80%99s-jonway-auto/

Jonway A380 Assembly Line Floor - Click Image for Slide Show

Jonway A380 Welding Line

Jonway A380 Welding Line - Click Image for Slide Show

Cathaya Invests $11 Million in ZAP for Jonway Acquisition

July 13, 2010 Leave a comment

SANTA ROSA, California (July 12, 2010) – Cathaya Capital, L.P. is investing US$11 million in ZAP (OTC BB: ZAAP) to finance the 51 percent majority interest acquisition of Zhejiang Jonway Automobile Co. Ltd. upon final closing of the transaction. The new company combines ZAP’s 15 years electric vehicle experience with Jonway’s ISO 9000 quality auto manufacturing capabilities to accelerate electric car production while opening new markets in China’s growing auto industry.

Dr. Priscilla M. Lu, the Chairman of the Board for ZAP

ZAP Board Chair, Dr. Priscilla M. Lu

Cathaya invested in ZAP last year with the objective of realizing this opportunity.  Since then ZAP has been focused on developing electric vehicle (EV) products for the partnership with Jonway, and also in finalizing this acquisition. Cathaya Capital is a cross border fund aimed at accelerating growth opportunities in China by combining international companies with technologies or global market presence to enhance the competitive edge of high growth potential Chinese companies. It is founded and managed by Dr. Priscilla Lu, a 30-year international technology and manufacturing veteran who now serves as Chairman of the Board of ZAP.

“Together these two companies with their complementary strengths form a new company reinforced by EV technology, mass production manufacturing skills, a strong sales presence in China, and access to international markets,” said Dr. Priscilla Lu. “The new team is focused on delivering revenues and profits while expanding international market presence with quality products aimed at addressing new market demands for alternative energy vehicles. We are pleased with China’s commitment to reduce pollution and the incentives being put in place that encourage adoption of EVs.  With our new company ZAP Jonway, we are well positioned to address this stimulated market.”

China has resolved to continue the retooling of China’s industries to reduce pollution, according to a July 4 New York Times article. China’s goal is to reduce carbon emissions by 40 to 45 percent in 2020 compared with 2005.  China’s rapidly growing economy has ambitious plans to control pollution and invest in energy efficient technologies like EVs.

About Cathaya Capital, L.P.
Cathaya Capital, L.P. is a cross border fund focused on investing in technology based growth opportunities in China by combining international companies that bring technologies or could give global market presence to high growth potential Chinese companies. The fund works with the ventures to leverage complementary strengths to create global companies with market strengths in China, matching international companies with technology or global market access.

Forward-Looking Statement
This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company’s products, increased levels of competition for the Company, new products and technological changes, the Company’s dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.

Contact:

ZAP USA
Alex Campbell
707-525-8658 x 241
acampbell@zapworld.com

USA Media
Pat Meier-Johnson
+1 415-717-9677
patmeier@patmeier.com

ZAP China
Jessica Gao
+86 13511038395
juan.gao@zapworld.com

Corporate
Alex Wang
+86 13968699888
wg@jonway.com

International Media
Ron Theis
+1 248-644-3330
rlt@theis.com

ZAP Acquires Majority Stake in China’s Jonway Auto

July 8, 2010 4 comments

The ZAP Jonway Factory Interior

ZAP Acquired 51% of Jonway Automobile for US$29 Mil, an Agreement to Mass Produces EVs in China

New Company Combines EV Expertise with Mass Auto Manufacturing in China

SANTA ROSA, Calif. and Zhejiang, CHINA—July 8, 2010 (PR Newswire)—

  • Agreement is US$29 Million in Cash for 51 Percent
  • Debt-Free Jonway Boosts ZAP’s Shareholder Value
  • ISO 9000 Certified Modern Factory
  • ZAP Jonway – a New International Automobile Company with Extensive EV Experience
  • 141 Acres, 3.6 Million Sq. Feet Factory Opened in 2009, Capacity of 30,000 Vehicles per Year
  • Jonway 2009: US$40 Million Annual Revenues; Jonway Q1 2010: US$20 Million Revenues
  • 850 Employees Quality, Technology Focused
  • 80 Factory-Direct and Hundreds of Factory Authorized Dealers in China
  • China Auto Manufacturer Meets EU Standards
  • ZAP Jonway EV is Exclusive Provider of EVs for the U.S. Pavilion at
  • Shanghai Expo (World Fair)

ZAP (OTC:BB ZAAP) and Jonway Group today announced they have signed definitive agreements according to which ZAP will acquire 51 percent of Zhejiang Jonway Automobile Co. Ltd. as part of a strategy to capitalize on the growing automotive and electric vehicle (EV) market in China.  ZAP is a 15-year-old California EV company and Jonway Auto is a wholly owned subsidiary of Jonway Group, a 20-year-old Chinese vehicle manufacturer. According to the terms of the definitive agreements, ZAP will acquire 51% of Jonway Auto for US$29.03 million in cash. The boards of directors for ZAP and Jonway Auto approved and signed the merger agreement on July 2, 2010.

ZAP and Jonway plan to build Electric SUVs in China

Jonway Auto produces thousands of SUVs per year.

Jonway Auto reported annual revenues of approximately US$40 million in 2009 and approximately US$20 million for the first quarter of 2010.  According to the terms of the transaction, Jonway Auto will be debt-free upon the closing of the transaction.

According to the terms of the definitive agreements, ZAP has the right to acquire the remaining 49% of Jonway Auto at the same valuation by March 30, 2011 or at a then current valuation after that date.  ZAP and Jonway intend this transaction to be phase one of a two-phase acquisition, whereby the two companies will combine their complementary expertise, leveraging ZAP’s EV technology and Jonway Auto’s quality ISO 9000 certified mass production capabilities to address the new alternative energy vehicle market. ZAP intends to acquire the remaining 49 percent of Jonway Automobile following completion of the first phase and following final regulatory approval.

The ZAP Jonway merger accelerates cost-effective manufacturing of ZAP’s electric vehicles and gives ZAP access to the Chinese market through Jonway’s distribution channels of more than 80 factory direct dealerships that feed into hundreds of factory authorized dealers.  Jonway’s volume manufacturing capacity gives ZAP a strong manufacturing base with the means of commercializing its innovative EV technologies.

“By combining ZAP’s experienced team of EV engineers with Jonway’s manufacturing capabilities, the combined ZAP Jonway will be able to scale up with the fast-growing worldwide market for affordable electric and fuel-efficient vehicles,” said Steve Schneider, CEO of ZAP Jonway. “The new entity will leverage ZAP’s extensive intellectual property and international market access with Jonway’s current China distribution channels and revenue base, for enhanced shareholder value. The new company creates an integrated worldwide sales and manufacturing operation.”

ZAP Electric Taxi Answers Korea EV Challenge

ZAP has integrated its electric drive train into several prototype ZAP Electric Taxis.

According to Dr. Priscilla Lu, ZAP Board Chair: “As originally planned when I joined ZAP in connection with the Cathaya Funds’ investment in the company, the Jonway transaction was formulated to give ZAP the complementary facilities and automotive manufacturing expertise to position itself as a worldwide EV and automobile manufacturer. Jonway’s management continues to lead and expand its product line of traditional vehicles and will begin to build the production line for ZAP’s EVs in the coming quarters. ZAP will enhance its operations management team to focus on delivering the opportunities at hand.”

Jonway Automobile, with approximately 800 employees, is currently manufacturing approximately 1,000 vehicles per month and has a capacity to produce up to 30,000 vehicles per year at its modern, 3.6 million square foot plant in Sanmen on approximately 141 acres of land.  Focused on quality, Jonway is ISO 9000 and China Compulsory Certification (CCC) certified. Jonway distributes through a nationwide network of auto dealerships in China and distribution partners in Europe and Egypt. Jonway’s 3-door SUV has been CE approved in Italy by its European partner for the European market.

“ZAP’s engineering enables us to expand into the EV market and position our company to be one of the leaders in China’s EV market,” said Alex Wang, CEO of Jonway Automobile. “The ZAP team also brings us international market access and automotive distribution channels for the new models that we are designing, and ZAP will help us meet the required international standards for these new markets.”

Earlier this year, ZAP integrated electric drive systems into several Jonway vehicles through its joint venture ZAP Hangzhou.  These vehicles are now being showcased and used as electric taxis at the Shanghai Expo.  Jonway has also agreed to produce the ZAP Alias electric car, which is now one of the remaining 15 finalists in the Progressive Insurance Automotive X PRIZE competition. ZAP is also one of the five companies selected by the United States Postal Service to engineer and retrofit a gas powered delivery van with a 100 percent electric power train.

Dr. Priscilla Lu added, “The new ZAP Jonway combined company enhances the complementary strengths of each, and uniquely positions the company in the EV market. Jonway Automobile has quality mass production manufacturing as well as access to the Chinese automobile market. ZAP can now apply its in-depth experience in EV technologies and engineering integration know-how to produce a new line of EV models for Jonway Automobile and provide access to worldwide international distribution channels.  Jonway, with physical asset value assessed at around US$60 million in land, buildings and modern manufacturing facilities, is cash flow positive, debt-free, has growing revenues, and offers shareholder value for ZAP. ZAP Jonway has now become a significant automotive manufacturer/distributor worldwide”.

About ZAP

ZAP is one of the world’s oldest and most experienced electric vehicle providers, having delivered over 117,000 of a broad range of electric vehicles to more than 75 countries since 1994. ZAP supplies electric trucks and vans to military, government and corporate fleets and is an innovator of electric motorcycles, scooters and ATVs. The Santa Rosa, California based company offers some of the only electric city-speed cars and trucks in production today and is leveraging its accrued technology know-how in developing a cost effective high-speed electric car called the ZAP Alias. Further information is available at http://www.zapworld.com.

Safe Harbor Statement

This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of ZAP’s products, increased levels of competition, new products and technological changes, ZAP’s dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the ZAP’s periodic reports filed with the Securities and Exchange Commission.

Contacts:

For ZAP
www.zapworld.com

For Jonway
www.jonwayauto.com

Corporate – Domestic

Alex Campbell
+1 707-525-8658
acampbell@zapworld.com

Corporate – China

Alex Wang
+86 13968699888
wg@jonway.com

Domestic Media
Pat Meier-Johnson
+1 415-717-9677
patmeier@patmeier.com

Corporate – China

Jessica Gao
+86 13511038395
juan.gao@zapworld.com

International Media

Ron Theis
+1 248-644-3330
rlt@theis.com

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