ZAP Jonway Announces its First Quarter 2011 Consolidated Results following Completion of the Acquisition of 51% of Jonway Automobile
This editorial appeared in the Sacramento Bee in December, but we reprint it here to offer insight into ZAP’s electric vehicle strategy in China over the past 13 years.
With all the irritations between the United States and China, it is worth noting some opportunities for “competitive cooperation.”
The latest agreements signed this month between the United States and China should make U.S. businesses more competitive in selling everything from industrial machinery and telecom devices to equipment for large-scale wind farms.
For example, companies that participate in the construction of wind farms will now be able to participate in projects to install wind farms in China. Until now, they were not able to participate because their non-Chinese experience could not be used for qualification as a bidder on a China-based project. The new commitment by China will allow those companies to gain access.
And as Jennifer Turner of the Wilson Center has said, in many cases, combining the strengths of innovative U.S. technologies and Chinese manufacturing capacity can be an important driver of economic growth and jobs here and in China.
But we have to be looking for commonalities and opportunities. For example, California and China are earthquake prone. China’s going to need to build 30,000 hospitals in the next 10 years. California has a lot of health care companies and a lot of experience building hospitals to meet earthquake standards. That is an exportable skill set.
Here is one small example. California has many of the leading companies and innovators in the electric-vehicle industry.
Santa Rosa-based ZAP Electric Vehicles announced an agreement during Gov. Arnold Schwarzenegger’s September trade mission to China whereby new plug-in vehicle technologies designed in California, combined with China-based manufacturing, will allow ZAP to provide electric charging stations, battery swap-out stations, as well as electric vehicle maintenance and repair depots in Shanghai’s Yangpu District.
Of the five biggest solar plants in China, infrastructure (such as polysilicon production equipment, crystalline ingot growth systems and fusion furnaces) comes from the United States, creating jobs here. Certainly, manufacturing solar panels in China creates jobs in China. But jobs also are created here at the project location.
The picture is much more complex than the “shipping jobs to China” slogan we hear every election season. If we embrace the concept of “cooperative competition” – even as we continue as a nation to seek enforceable agreements against pirating, protectionism and manipulated currency in China – we can take advantage of our strengths to make economic progress during this time of difficult economic transition.
SANTA ROSA, Calif. (December 17, 2010) – Electric car pioneer ZAP (OTC BB: ZAAP) this week began project planning with the government of Shanghai’s Yangpu District to develop a Green City Zone in Yangpu’s downtown area, a university and research hub that is home to 1.24 million people. Based on an MOU partnership agreement signed in San Francisco on November 19, 2010, the project plans to reduce carbon emissions in Yangpu using electric vehicles (EVs) for its public transportation while installing an EV charging infrastructure, battery swap-out stations and maintenance support centers.
The partnership agreement with Yangpu government is a direct result of Governor Schwarzenegger’s trade delegation to Shanghai in September this year, sponsored by the Bay Area Council, and is one of the first formal initiatives between the two regions.
Party Secretary Chen Yin attended the signing ceremony in San Francisco on November 19, 2010. At the ceremony, Party Secretary Chen said that improving air quality, “green” urban mobility and development of clean energy infrastructure are some of the key initiatives of Yangpu in the next few years. He indicated that this agreement shows the beginning of growing ties between two of the world’s leading technology innovation centers, Yangpu and the Bay Area, especially in the development of clean technology. Within the 24 square mile district of Yangpu there are 14 universities surrounding the Knowledge Innovation Center (KIC), a technology community that includes Fudan University and Tongji University, making this area one of the leading research centers in China on Clean Tech.
“New plug-in vehicle technologies from ZAP, together with Jonway’s cost effective manufacturing in China, will accelerate the implementation of our Green Project with Yangpu. This truly bridges the best aspects of both the US and China, leveraging the strengths of the technological innovation in the Bay Area and Yangpu,” said ZAP CEO Steve Schneider.
According to the framework of the partnership, ZAP will provide an electric car charging infrastructure, battery swap out stations, as well as EV maintenance and repair depots in Yangpu. ZAP will work with Yangpu’s government agencies, local universities, and private corporations on plans to further expand zero-emission transportation in the city.
“We have just started the initial planning of this long term project. The hard work of implementation and operations is ahead of us. We believe that the project planning and resourcing will be a yearlong process. We are pleased to be part of Yangpu’s Green Project and share Party Secretary Chen Yin’s vision and commitment to delivering his objectives,” says ZAP Chairman Dr. Priscilla Lu.
To execute these plans and better access the Chinese market, ZAP Jonway will open its EV sales and operations office in the Yangpu District and plans to establish its research and development engineering center in the district to take advantage of the university communities.
Based in Santa Rosa, ZAP has been a pioneer in the electric vehicle industry since 1994, engaging in the design, development, commercialization and distribution of 100% pure electric vehicles and power systems, and delivering a wide range of vehicle designs to consumers and fleet customers in the United States and international markets for sixteen years. The company supplies electric trucks and vans to military, government and corporate fleets and offers personal transportation products including electric motorcycles, scooters, ATVs and some of the only electric city-speed vehicles in production today. ZAP is also developing a freeway capable electric vehicle called the ZAP Alias that was a finalist in the Progressive Insurance Automotive X PRIZE.
Jonway is the trade name of Zhejiang Jonway Automobile Co., Ltd., an automobile manufacturer based in Taizhou, Zhejiang, China that currently produces several thousand units per year of two SUV models, the A380 3-door and the A380 5-door. Built in 2009, Jonway’s modern 3.6 million square foot factory on 141 acres is ISO9000 certified and has the capacity to produce up to 30,000 units per year. It employs over 800 workers and distributes its vehicles in China through 80 factory direct dealers and hundreds of factory authorized dealers. Jonway Auto is a subsidiary of Jonway Group, which has been a leader in the manufacturing of motorcycles, ATVs and related products for more than 20 years.
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.
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ZAP (Jonway) USA
Alex Campbell, +1-707-525-8658 ext. 241
ZAP (Jonway) China
Jessica Gao, +86 13511038395
THE PRESS DEMOCRAT
The company separately announced that it has completed a $10 million down payment for a majority share in Chinese car maker Jonway Automotive. The payment is part of a $29 million purchase agreement first announced in July.
The two developments are part of Zap’s efforts to become a manufacturer and retailer of electric vehicles in China, now the world’s largest auto market.
The memorandum is “the first big deal of its kind,” the result of growing ties between business and government leaders from the Bay Area and Shanghai regions, said Jim Wunderman, president and CEO of the Bay Area Council, a business advocacy group. It was fostered in part by a state delegation that Gov. Arnold Schwarzenegger and the Council led to China in September.
The deal, Wunderman said, signals that both Zap and local Chinese officials understand that neither party can by itself build the charging and battery-swap stations needed to make electric vehicles a practical means of transportation in Yangpu, a district of Shanghai.
“Whether you’re building electric vehicles in the Bay Area or China, it’s going to require a public/private partnership to get it done,” Wunderman said.
For the nine months ending Sept. 30, Zap reported a net loss of $7.3 million, compared to $7.5 million a year earlier. The company has posted one profitable year in its 16-year history.
The memorandum, signed last week in San Francisco by Yangpu party secretary Chen Yin, does not give Zap the right to exclusive sales, said Zap Board Chairwoman Priscilla Lu. But in a country where relationships are key, she said, “this signing of the agreement shows his commitment and trust of the company.”
Production of Zap/Jonway electric vehicles is scheduled to begin in China in the second quarter of 2011, she said.
SOURCE: The Santa Rosa Press Democrat
ZAP Website: http://www.zapworld.com