ZAP is not new to the world of transportation but one thing is certain, they have always been ahead of the curve. ZAP is all about smart. You’ve probably heard about the SMART car — and ZAP says it sells every Smart car it brings into the country, but there is a whole lot more to this company than the Smart car. We’d like to introduce you to ZAP of recent Smart car fame – but we think that’s just one reason this is a serious company that operates at a very smart and international level.
Why is ZAP a Smart Company?
Stock Guru went straight to the source today to ask, “Why is ZAP a Smart company and a smart investment.” We already had two good ideas:
It’s a true hedge against high oil prices!
It’s the only pure play in alternative fuel transportation!
We found Steven M. Schneider, Chief Executive Officer of ZAP at the company’s headquarters in Santa Rosa, California. He filled us in on the details. First, Schneider was quick to point out that the entire company is a green company. ZAP, mean zero air pollution but there was a lot more to the story than that.� � ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries.
Schneider described ZAP as an advanced technology vehicle company focused on the micro car niche market. Schneider said, “With the Smart car on the ground and being delivered to dealers in the United States we are already looking to our next import and its just over the horizon, the Pacific horizon, specifically China. We’ve got the Smart car underway but we’ve got something more significant than the Smart car, the Xebra (pronounced Zebra). It’s Smart car sized and like the Smart car, the Xebra is the ultimate in social responsibility. It’s an electric car with absolutely, positively zero air pollution. And equally attractive to its target market it’s priced under $5,900.00 — batteries not included!”
He noted, “We have proven that ZAP is the first company in history to import a vehicle and bring it to full U.S. compliance without reliance upon exemptions. And that’s a really big deal! This import knowledge and expertise has bought other manufactures to us!”
Schneider continued. “This import knowledge and expertise has made us THE experts in the industry. Some manufacturers with a desire to enter the US market have had no where to turn for guidance in this critical and technical vehicle import process. Many manufacturers who have unsuccessfully attempted to enter into the US market with imported vehicles have failed. NOW they’re knocking on OUR door. They cannot go to the auto giants and there is no one but us with the expertise. We are the ‘go to guys.’”
“But just as importantly, and this is the other side of the coin, the missing factor in the equation, we’ve got the established working relationships and exclusive long term contracts for production cars manufactured in China and we’ve got the proven experience. We own proprietary technology that allows ZAP to import vehicles which are brought to U.S. standards. We are the first company to do that.”
ZAP is a pioneering company full of firsts. Here are some of the most recent and significant firsts:
1. ZAP imported a mass produced vehicle from China;
2. ZAP delivered full performance vehicles produced in quantity (mass production) to the United States;
3. ZAP brought an overseas vehicle not specifically designed for U.S. standards to full U.S. compliance ;
4. ZAP has the highest non-hybrid vehicle fuel vehicle in the United States;
5. ZAP will bring a mass produced vehicle from Brazil to North America;
6. To offer a tri-brid vehicle to the United States, one that runs on gasoline, ethanol, and/or electricity.
7. ZAP introduced a one hundred percent TRUE flex-fuel vehicle to the United States.
Steve Schneider noted, “We are now experts. We were the first to blaze these trails. Bringing a mass production vehicle into the U.S. from China is major milestone in the automotive industry. One that I think rivals the advent of the Japanese cars. In retrospect this could be a turning point in the consumers’ perception of the automobile. The auto industry has engaged in rampant speculation about who will be the first to import a Chinese vehicle. That question has now been answered. It’s ZAP!”
“We have emerged from some difficult challenges to be the leader in this industry today.”
“What I want is for investors to examine closely what we are doing today — and what it means for tomorrow. I want them to understand that financially we are solid. We have no long-term debt except for the mortgage on our downtown Santa Rosa headquarters. We are in a position to produce revenue right away. We received 2.2 billion dollars in purchase orders within ninety days of our launch for distribution of advanced technology vehicles. We think we can fill those orders with a combination of Smart cars, Xebras, and Obvios. We’ve also got a 425 million dollar revolving line of credit for the purchase of vehicles. It’s no secret we’ve got vehicles that are in incredible demand.”
“Right now, today, ZAP has the only electric vehicle in America in addition to having the highest fuel economy car in country. We are the only company importing from China with its low cost production overhead. We are importing a full performance production electric car and we have current production capability of 1,000 cars a month and ZAP has the ability to expand on that 1,000 cars.”
“There’s a reason people love these cars and cannot get enough. Driving an electric car is a very unique experience. There is a totally smooth power acceleration. There is no noise and by the way that means the IPod ready sound system is fabulous; there is no ambient motor noise. It’s like driving in a giant stereo, it’s earth friendly, cost efficient, and your initial investment is recaptured in the fuel savings! What more could you want.”
Electronic Cars Cause Quite a Stir – ZAP’s Xebra is the Future
For now there is no question that the Smart car is making quite a stir but Schneider sees ZAP’s exclusive import of the Xebra will continue to fulfill that niche and give more bang for less buck. These cars are really super vehicles — and they are true micro-car. Some are so short that Zap likes to boast they can be parked perpendicular to the curb. At a little more than 8 feet long, they are four feet shorter than BMW’s Mini Cooper.
Schneider is proud of Zap’s Smart car which is powered by a three-cylinder, 61-horsepower turbocharged engine capable of a top speed of 85 mph. It comes in three versions, including a convertible. But he is quick to point out that the Xebra will be even smarter than the Smart car and cost $9,000. He is glad to have the Smart Car pave the way for the Xebra.
ZAP XEBRA – Line here to view the Xebra!
Speed: Up to 40 mph. Speed can be increased with either more batteries or more power density batteries such as lithium or nickel metal hydride batteries.
Range: Up to 40 miles with standard lead acid battery. Range can be increased with lithium or nickel metal hydride batteries.
Charger: Onboard 110 Volt AC
Motor: DC
Seating: Up to 4 (Max 500 lbs.)
Battery: Lead Acid
Dimensions: 10′ Length (290 cm) x 4.66′ Width (142 cm) x 5.05′ Height (154 cm)
Options: Upgraded Radio/CD, Color, Leather Seats
Colors: Ocean Blue, Zebra Flash, Kiwi Green and Lipstick Red
CEO, Schneider says 140 U.S. dealers ordered Smart cars, but Zap is being choosy: Only 75 will be given the cars. They represent a mix of independent used car lot operators and an increasing proportion of new car dealers. “The demand for Smart cars is huge and Schneider he’s ready to sell them! Prices start at $24,000, but some dealers say they are fetching as much as $30,000 from first-on-their-block buyers. At those levels, Schneider says, the cars are profitable and dealers want more.
In Phoenix, dealer Tim Day blames a rear-end auto accident in front of his 3D Auto Wholesalers dealership earlier this month on gawkers checking out the Smart cars that had arrived. He’s gotten nine so far. He says customers are clamoring for them.
Bob Chauvin, who has two car dealerships in Reno, says he sold the four cars he’s received and expects new shipments every week. Buyers are as far away as Florida.
“Everybody is crazy about these cars,” he says. On a drive to Arizona, “Everybody on the road is waving at you. They think it’s a hybrid or something.”
“Consumers clearly want cleaner cars,” said Alex Campbell, communications director for Santa Rosa-based ZAP. “They don’t want to go to war over oil.” ZAP has the only electric car that can go faster than 25 mph.
The National Highway Traffic Safety Administration has found that Zap’s version of the Smart car is up to snuff. “Just because it’s small doesn’t mean it can’t meet the standard,” says agency spokesman Rae Tyson. Smart notes the Smart car has passed rigorous safety tests, including a head-on crash with a Mercedes E-Class sedan. The Smart car has got a bit of a shape like an egg. All the energy gets directed away from passengers.
ZAP in Brazil — The Obvio! It’s So Obvious!
The Obvio is produced in Brazil and ZAP has a twenty-one year agreement with Obvio to distribute these cars in the North America. ZAP also has a duty free agreement to import them. Link here to view the car.� It’s fabulous — the Obvio!
Obvio is Portuguese for “obvious.” Well, it may not be totally obvious to the American market yet, but it will be! What ZAP is producing is a flex-fuel efficient car with an amazing innovative European design. Brazil has been in the forefront of manufacturing and design of ethanol powered vehicles and flex fuel powered vehicles and has been manufacturing these fuel efficient vehicles in mass production for thirty years.
The Obvio has Lamborghini styled doors and seat three. Standard on the Obvio is a 175 horsepowered engine that will be the ultimate be a socially responsible muscle car. The 9two models ZAP will produce will have an incredibly appealing cost of approximately $14,000.00. These models will be loaded with a Windows XP carputer (a computer that operates the whole car), WiFi, Blue Tooth and come in vibrant colors that are Brazilian and ultra cool.”
What is smart about the Oviou is that it is perfect for the US market. It can run on any combination ethanol and or gasoline. This means Obvio will be the first United States 100 percent ethanol vehicle — but it will not be tied exclusively to ethanol. Flex-fuel means that ANY combination of ethanol and gasoline will power this vehicle.
Fully Outsourced Manufacturing of Vehicles — Revolutionary Cost Efficient Concept
Schneider explains that fully outsourced manufacturing is the direction profitability models are taking in the automotive industry. ZAP has implemented a unique manufacturing facility and production agreement for the Obvio in Brazil which is a profit driven relationship. “We believe this new model of production will be extremely profitable. It started with the complete cooperation of the Brazilian government at the highest levels which has supported and facilitated our Obvio production. We have a five million square foot former Alpha Romeo facility in Brazil. We will employ 4,000 to 5,000 people to produce the Obvio.”
“What is new and unique about fully outsourced manufacturing is that we have a supplier supported manufacturing agreement. This means each supplier bears all costs associated with manufacturing. Each individual producers and supplier of the vehicles components will bear their associated costs. I mean everything, the engines, transmissions, doors, windows, starter motors, batteries, and virtually the cost of every component of the vehicle will be born by the individual suppliers.”
The significance of this unique concept twofold: tremendous savings to the Obviou purchasers and for the manufacturer increased profitability. ZAP owns 20 percent of the production.
Schneider notes, “We are not the first to participate in a supplier manufacturing concept. Volkswagen has been doing it for years and we intend to build on the success of Volkswagen in Brazil. It’s my understanding that VW’s truck division which operates on this model in Brazil is its most profitable division and yields the highest quality product in their production lines. The only difference in our production in Brazil from VW’s is that we are the first to use this process for vehicles imported to the United States.”
About ZAP – There is More to Zap than the Smart Car — The Xebra — The Obvio!
ZAP is an acronym for Zero Air Pollution. ZAP has been a leader in advanced transportation technologies since 1994, delivering over 90,000 vehicles to consumers in more than 75 countries.
ZAP is at the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, ethanol, hybrid, trybrid and other innovative power systems.
ZAP makes vehicles and that is their core business.
Zap also makes electric bicycles, motorcycles, scooters, and vehicles, as well as kits for motorizing bikes with battery power.
ZAP makes personal watercraft as well as electric vehicles designed for urban and commercial use.
ZAP is entering into the world of all terrain vehicles which are four wheeler off road vehicles.
In 2004 ZAP obtained exclusive rights from California-based Smart-Automobile LLC to develop Smart cars in the US. CEO Steven Schneider and co-founder and Chairman Gary Starr own about 33% and 16% of ZAP, respectively.
ZAP’s bikes are popular with electric utilities and police departments who desire inexpensive and non-exhausting modes of transportation for their meter readers and officers. They are also popular with middle-aged customers who like to bike but need a little help. Motors begin at about $350; bikes at about $700. Its products are sold through company-owned and franchised stores, mail order, its Web site, and independent bike shops. ZAP’s Rental Outlet provides electric vehicle rentals for urban areas throughout California.
In early 2004 the company purchased Santa Barbara-based The Electric Transportation Company (ETC), maker of drivetrains for electric propulsion vehicles. In April 2004 ZAP acquired the exclusive distribution, marketing, and technology rights from Smart-Automobile LLC to make its Smart cars US compliant.
Company History:
Gary Starr is the co-founder of electric vehicle retrofitter U.S. Electricar, founded ZAP (Zero Air Pollution) Power Systems in 1994. Gary was encouraged by the growing attention and legislation concerning fossil fuel emissions at that time California required ten percent of all vehicles sold by 2003 to be zero emission vehicles. Some states and countries have similar legislation.
In 1996 ZAP began to sell its bikes through auto dealerships and began selling products through catalogs. The company’s business continued to pick up speed in 1997, when ZAP and Italian electric-scooter maker Movity formed ZAP Europa to cross-distribute products. The company also signed manufacturing and distribution agreements that year with Dantroh Japan, XtraMOBIL of Switzerland, and Forever Bicycle Co. (Shanghai).
ZAP began selling its stock directly to the public via the Internet in 1997 and opened an outlet store in San Francisco. A year later it introduced the ZAPPY scooter, which put a zip into sales.
Zap bought electric vehicle maker emPower in 1999. The company bought Electric Vehicle Systems, which makes a two-wheel vehicle designed to tow skaters and skateboarders, in 2000. It added Aquatic Propulsion Technology and its sea scooter technology that year.
In 2001 the company shortened its name to ZAP to solidify its brand name. ZAP merged with automotive distribution companies Voltage Vehicles and The RAP Group.
In March 2004 ZAP purchased the assets, including electric vehicles and intellectual property, of Electric Transportation Company. The next month the company acquired the rights from Smart-Automobile LLC to make Smart cars US compliant.
In March 2004 ZAP purchased the assets, including electric vehicles and intellectual property, of Electric Transportation Company. The next month the company acquired the rights from Smart-Automobile LLC to make Smart cars US compliant.
Today the Smart car is US compliant and ZAP is delivering cars to dealers. The demand is overwhelming and ZAP has the Xebra and the Obvio on the horizon.
Schneider worked for Honda of Santa Rosa, America’s first Honda dealership. ZAP is also located in Santa Rosa. He remembers asking his boss where his vision for Honda in Santa Rosa came from.
Schneider relates his reply: “I was the only one foolish enough to take on the car concept from Honda. They were viewed as motorcycles and the idea of a Honda car was not appealing to everybody. Actually, the Honda car was offered to all the Honda motorcycle dealers. Almost everybody turned it down. I was a Honda motorcycle mechanic and no one wanted to sell a Honda car made in Japan. But, I did. I sold the first Honda car from the first dealership in America and I never looked back.”
Schneider is excited that 36 years later he is importing the first Chinese car to America from his home office in Santa Rosa and sees many similarities and he’s excited. “Lighting strikes twice! Once again Santa Rosa is the epicenter of pioneering importation. I am selling the first Chinese auto in America. I’m only looking forward because I believe I see a great future in Chinese cars in the United States! You know, since that initial Honda sale many have regretted not investing in Honda at the beginning. They will get a second chance with ZAP.”
Sources:
Hoovers
USA Today
Knight Ridder
ZAP and ZAP CEO Steven Schneider
501 4th St.
Santa Rosa, CA 95401
Phone: 707-525-8658
Fax: 707-525-8692
Forward Looking Statements Statements in this press release that relate to future plans or projected results of ZAP are ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA, and all such statements fall under the ’safe harbor’ provisions of the PSLRA. ZAP’s actual results may vary materially from those described in any ‘forward-looking statement’ due to, among other possible reasons, the continued acceptance of ZAP’s products, increased levels of competition, new products and technological changes, ZAP’s dependence on third-party suppliers, intellectual property rights, and the realization of any of the other risks described in ZAP’s Annual Report on Form 10-KSB, or in any of ZAP’s other filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to put undue reliance on forward looking statements.
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