ZAP (fka ZAAP)

[WOLDUMAR]

China looks set to be hugely competitive and now a new name has been added to the list of competing manufacturers.

ZAP and Jonway Group have signed definitive agreements that will see ZAP acquire a 51 per cent stake of Zhejiang Jonway Automobile Company in part of a strategy to capitalise on the growing automotive and electric vehicle market in China.


ZAP Jonway plans to introduce an electric A280.

As part of the agreement, ZAP will acquire 51 per cent of Jonway Auto for US$29.03million. It’s easy to see why ZAP has made a move for the company as it reported annual revenues of around US$40million in 2009 and around US$20million the first quarter of 2010 alone.

ZAP also has the rights to acquire the remaining 49 per cent of Jonway Auto at the same valuation by March 30, 2011, or at a then current valuation after that date. It is intended that this will be phase one of a two phase acquisition with the two companies to combine their expertise leveraging ZAP’s electric vehicle technology and Jonway Auto’s mass production capabilities.

It is believed that the merger will accelerate the cost effective manufacturing of ZAP electric vehicles while also giving ZAP access to the Chinese market. Steve Schneider, the CEO of ZAP Jonway, commented that the new company would create an integrated worldwide sales and manufacturing operation.

At the moment, Jonway Automobile manufactures around 1,000 vehicles per month and has approximately 800 employees. It has a capacity to produce up to 30,000 vehicles a year at its 3.6million sq ft plant in Sanmen.
http://www.thegreencarwebsite.co.uk/blog/index.php/2010/09/21/zap-aims-to-move-in-on-chinese-electric-vehicle-market/