ZAP (fka ZAAP)

[WOLDUMAR]

ZAP Jonway (OTCBB: ZAAP) Poised to Meet Chinese Electric Vehicle Demands
http://theotcinvestor.com/zap-jonway-otcbb-zaap-poised-to-meet-chinese-electric-vehicle-demands-1033/
By Andrew Klips · Monday, March 21st, 2011
ZAP Jonway (OTCBB: ZAAP), a new automotive company combining ZAP’s 16 years experience in electric vehicles (EV) with Zhejiang Jonway Automobile Co. Ltd., a China manufacturer of conventional SUVs, similar to companies like Tesla Motors, Inc. (Nasdaq: TSLA) and Li-ion Motors Corp. (OTCBB: LMCO), has aligned its business strategies and is poised to capitalize on the rapidly-emerging Chinese markets.
ZAP recently completed the acquisition of 51 percent of an established car maker in China. This merger serves several purposes as it not only produces additional revenues immediately for operations, but also expands the global footprint of ZAP and positions them in the forefront of what could become the largest Electric Vehicle (EV) market in the world.
China’s Number 1… at Air Pollution
China’s immense population is heavily localized and full of bustle. Capital city, Beijing, added nearly a million cars to their already congested roads last year alone; and it certainly isn’t helping with pollution. In the final week of February, Bloomberg reported that Beijing’s air quality was “worse than hazardous” as the index used by the U.S. Embassy to measure the polluted air quality recorded the rating as “Beyond Index.”
The Chinese government is clearly aware of the pollution problem and is in the midst of initiatives to push more electric vehicles onto its streets. Last June, Xinhua, the official Chinese news agency, reported that the Chinese Ministry of Finance announced a pilot program in five cities to subsidize the purchase of electric cars which will allow consumers to receive up to $8,785 off the price of a battery-powered car with the cash incentives going directly to the carmaker. The five cities slated for the program are Shanghai, Shenzhen, Hangzhou, Hefei and Changchun. The government is also putting their money where their mouth is by flipping the bill for the installation of charging stations and battery recovery networks in those cities.
Experienced and Poised to Capitalize
While many companies, large and small, are still putting together the pieces of the puzzle to bring electric cars to market, ZAP Jonway has been an industry leader for sixteen years with a full production line already intact. The experience has generated attention with the largest of organizations including agreements and working relationships with household names such as the U.S. Postal Service and United Parcel Service (“UPS”).
ZAP Jonway is uniquely positioned to capitalize on the China incentives and the fact that it has the fastest growing automobile market in the world. In a report discussing the booming China automobile industry and China’s government pushing for expansion within the electric and hybrid automobile industry, Phil Gott, managing director of automotive science and technology at IHS Global Insights, commented, “No country is in a perfect position with pollution-free electricity today, and you have to start somewhere.” Industry leaders are turning attention to “green” vehicles in China as it is anticipated that as the largest car market in the world now, it will logically become the largest electric vehicle market in the future.
Slow-moving Companies Take a Seat behind ZAP Jonway
While other companies are scrambling to align strategies, ZAP Jonway already has a firm foothold to meet the Chinese needs. The recent acquisition of 51 percent of the capital stock of Zhejiang Jonway Automobile Co. Ltd. of Sanmen, Zhejiang, China, an established industry leader in the gasoline SUV market in China, pushed ZAP Jonway to the forefront on the EV industry. The combined company was assembled for the sole purpose of exploiting the emerging market as revenue derived from both companies established businesses can be used for funding the internal expansion.
While the market is early on in development, it is still not going to wait for the rest of the world to organize operations to come to China. The demand is already rising based on a concerted effort of the Chinese government and overall global concerns about depleting resources and more environmentally friendly vehicles. ZAP Jonway Jonway is the first and only company currently providing full size pickups, vans, small SUVs, and smaller utility vehicles, which leaves the Company well-positioned to dominate across a wide spectrum of customers from individual consumers to the larger markets, such as electric commercial fleet vehicles.