ZAP (fka ZAAP)

[WOLDUMAR]

ZAP’s (OTC-BB: ZAAP) Takover of Jonway Could Generate Big Value
By Justin Kuepper · Wednesday, January 5th, 2011
ZAP (OTC-BB: ZAAP), one of the world’s oldest providers of consumer electric vehicles, similar to companies like Tesla Motors, Inc. (Nasdaq: TSLA) and Li-ion Motors Corp (OTC-BB: LMCO), could see big value from its takeover of Jonway Auto Group in China, according to a recent research report put out by MDB Capital Group LLC (View Complete Report).
ZAP (OTC-BB: ZAAP), one of the world’s oldest provider of consumer electric vehicles, announced the merger/acquisition of 51% of the Jonway Auto Group on July 8, 2010. As a large vehicle manufacturer based in China, the combination could catapult ZAP into the forefront of electric vehicle production and marketing in one of the world’s fastest growing auto markets.
Jonway built its reputation in the production of motorcycles and scooters and began manufacturing high-quality automobiles in late 2008. In the fall of 2009, ZAP and Jonway entered into a joint venture to develop electric vehicles focused on the fleet and government markets. After the JV successfully developed a five-door, all-electric vehicle designed to be an electric taxi, the two companies decided to merge in order to strengthen the relationship and ultimately unlock substantial value.
As a combined entity, ZAP will work closely with the Chinese government to manufacture and market electric taxis for the Chinese and other markets, while it already has a 100 vehicle order for a customer in Korea. Through these contracts and others, analysts expect revenues to approach $90 million on an annualized run-rate with operating margins of between 4% and 5% of revenues.
Click on the link below to read the complete research report:
http://www.zapworld.com/sites/default/files/pdfs/ZAAP-Update-July-2010.pdf http://theotcinvestor.com/zaps-otc-bb-zaap-takover-of-jonway-could-generate-big-value-932/
About ZAP
ZAP engages in the development, acquisition, and commercialization of electric vehicles and electric vehicle power systems in the United States. It offers on-campus trucks and vans to various government organizations including the FAA, US military, state government agencies and local government as well as large corporations and small businesses. ZAP is also developing electric sport utility vehicles with Zhejiang Jonway Automobile Co, Ltd. for the taxi fleet market in China. The company markets various forms of transportation, including alternative energy and fuel efficient automobiles, motorcycles, bicycles, scooters, neighborhood electric vehicles, and commercial vehicles. It also operates a retail car lot for sale of conventional and electric vehicles, as well as selling its products through the Internet via its website http://www.zapworld.com. The company was formerly known as ZAPWORLD.COM and changed its name to ZAP in 2001. ZAP was founded in 1994 and is headquartered in Santa Rosa, California.
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