• 18
Chinese parent company Zap Jonway has ousted top executives at California-based Zap, a maker of specialized electric vehicles. On the last day of 2012, Zap's board of directors removed Priscilla Lu as chairman and all other duties Lu had been responsible for at any of Zap's subsidiaries or joint ventures.

As part of the company's 8-K tax federal filing, Zap also announced removal of Goman Chong from all positions held on board committees, Michael Ringstad as controller and Charles Schillings as co-chief executive officer. Zap eliminated the dual positions of co-CEO and confirmed Alex Wang will serve as CEO until his successor is elected. Mark Abdou, current director of Zap, was elected by the board to the offices of chairman and secretary and Jeff Schneider will serve as president, until their successors are appointed.

Juan Gao and Luo Hua Liang were appointed to serve on the board of directors, also until their successors are elected. Other board of director members at Zap are Mark Abdou, chairman, Alex Wang, Steven Schneider, Priscilla Lu and Gorman Chong. More information on the management turnover was filed in an accompanying 8-K filing with the Securities and Exchange Commission.

Zap is best known for its three-wheel electric specialty cars, like the Zap Xebra, which has recently gone through two recalls with the National Highway Traffic Safety Administration for brake issues. The Santa Rosa, CA-based company entered the Chinese market about two years ago through its merger with Zhejiang Jonway Automobile Co. The companies created Zap Jonway and began producing four-wheel electric sport-utility vehicles for China's taxi industry.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 18 Comments
      • 2 Years Ago
      These guys are the sleazy slime ball used car salesman type they have over infiltrated their numbers and are constantly spending money at the strip clubs and five and dime hookers...the main Guy...the little Jew has a bag of horse pills he carriers around that he needs to take to cure his V.D
      Marcopolo
      • 2 Years Ago
      I feel a certain degree of empathy for poor old ZAP. The American part of the company started life with the very best of intentions. ZAP's founders, Jim McGreen and Gary Starr were idealistic and enthusiastic pioneers of electric transportation. But instead of sticking to profitable niche markets, ZAP wanted to become Tesla ! Along the way, ZAP has tried to design,build, and market electric : auto-mobiles, motorcycles, bicycles, scooters, personal water-craft, hovercraft, ATVs, NEC's and commercial vehicles! Some of these vehicles were quite good, others pathetic, and some just plain silly. Over the years, ZAP has acquired, JVC'd or partnered with many other small under-capitalised EV companies with big dreams and low capabilities. ZAP was often involved in disreputable dispute for selling valueless dealerships, wildly exaggerated financial report to raise money etc. It's hard to tell whether everyone involved in ZAP is dishonest or just naive. Daimler-Chrysler, (Smart ) stated ZAP's conduct reveals "both the sham nature of its purported business and a lack of trustworthiness that is nothing short of stunning."! Foolishly, ZAP sued Daimler, and lost ! Interestingly, the PRC provincial government of Zhejiang, was happy to unload 51% of Zhejiang Jonway Auto-mobile to ZAP US. Under the management of Dr Priscilla Lu and her Cathaya Funds Ltd management team, ZAP has finally reached the position where it's financial status is best described as : ZAP has return on total asset (ROA) of (14.35) % which means that it has lost $14.35 on every $100 spent on asset. This is way below average. Similarly, it shows return on stockholders equity (ROE) of (63.94) % meaning that it created substantial loss on money invested by shareholders. ZAP currently holds 51.89 M in liabilities with Debt to Equity (D/E) ratio of 1.26 which is about average as compared to similar companies. ZAP has Current Ratio of 0.45 indicating that it has a negative working capital and may not be able to pay financial obligations when they are due. The election of a Lawyer, Mark Abdou, to serve in the interim (while a total audit is conducted) reflects the displeasure of the less tolerant PRC investors. The future of ZAP will be determined by whatever purpose it's PRC backers can see of value.
      • 2 Years Ago
      National Highway Traffic Safety Administration Order to ZAP Based on ZAP's Failure to Reasonably Meet its Recall Remedy and Notification Requirement for 2008 Xebra Vehicles Nov 27 12 On November 16, 2012 ZAP received notification from the Office of Chief Counsel of the National Highway Traffic Safety Administration (NHTSA) containing Findings, Conclusions, and Order on ZAP's Failure to Reasonably Meet its Recall Remedy and Notification Requirements, dated November 13, 2012, related to the recall of ZAP's model year 2008 Xebra, an electric three-wheeled motor vehicle with an enclosed sedan or truck body style. NHTSA determined that ZAP has not reasonably met its recall remedy and notification requirements and was ordered to remedy the model year 2008 Xebra by, among other things, refunding the purchase price, less reasonable allowance for depreciation, providing notice of this refund remedy to model year 2008 Xebra owners, purchasers, and dealers, and picking up and disposing of each recalled vehicle at ZAP's sole expense. NHTSA determined that the average market price of a model year 2008 Xebra as of October 12, 2012 to be $3,100. The order stated a total of 691 model year 2008 Xebra vehicles are subject to this remedy. ZAP's internal records indicate that 691 vehicles were imported into the U.S. by ZAP, of which 627 were shipped to customers located in the U.S. ZAP was ordered to respond to NHTSA and to take certain other actions by November 26, 2012. here it is..
      Grendal
      • 2 Years Ago
      They bought what was left of Aptera and have done absolutely nothing with it.
      2 wheeled menace
      • 2 Years Ago
      LOL @ delta trike cars.
        2 wheeled menace
        • 2 Years Ago
        @2 wheeled menace
        Don't turn at any faster than 5mph..
          Marcopolo
          • 2 Years Ago
          @2 wheeled menace
          @ EVnerdGene Lol !
          EVnerdGene
          • 2 Years Ago
          @2 wheeled menace
          I drove one on the streets of Santa Rosa with a director in the passenger seat. While I was going 25mph director said; "it'll go 35." I said; "naw that's ok, I'm thrilled enough."
      • 2 Years Ago
      GREEN blog how come you didn't mention the 4M that ZAP WAS ORDERED TO REFUND TO THE BUYERS OF THE ZEBRA CARS/TRUCKS IN NOV 2012. THEY WERE SUPPOSED TO COMPLY BY DEC 2012. THAT COULD BE WHAT CAUSED A BOARD ROOM FIGHT.
        Marcopolo
        • 2 Years Ago
        @ elwood722 Elwood, is there an internet cafe somewhere that you guys use, has caps lock keyboard that stick because some liquid substance has ,......ah....nevermind, ..I think I've worked it out !
      Giza Plateau
      • 2 Years Ago
      Why 3 headlights on such a small vehicle.. And how can such a company ever be successful enough to need a board of directors..
      • 2 Years Ago
      The less tolerant PRC investors are smart enough to nip this in the bud.. because the UFO/380A SUV was losing money at Jonway for 3 years before ZAP got involved. ZAP promised them an electric UFO for distribution purposes in 1 year. So far only 1 has been delivered in 3 years; think I would be upset too. Purchase orders have gone by the wayside because now the Chinese Govt decides which companies have products suitable for export. ZAP JONWAY joint venture has not made that list of being 'acceptable'; we might ad that it has NOT passed safety tests like the EUROPEAN NCAPS and the US GOVT has a finding for failure on safety as well. Those findings aren't in a vacuum as some would have you to believe. News among car manufacturers is hard to hide. You continue to feel sorry for ZAP , you feel even worse if you bought one and in 3 years time lost 90 percent of the value of what you paid for it. Then the company you had bought it from claims they only come with a 90 day warranty and you are on your own. Those type of retail policies doesn't promote loyalty going forward.
        Marcopolo
        • 2 Years Ago
        @ cobber22stone It's true I would not like to be either an investor or customer of ZAP. I was simply trying to provide some historical context to ZAP's trading activities and early aspirations. Most of the enthusiastic early EV start-ups have long since disappeared. Some just died away quietly, others crashed, taking down hundreds of millions of investor funds. Nearly all died as a result of an unrealistic product/business plans, or incompetent/dishonest management. Naive Westerners who thought that they could buy 'bargains' from the PRC (or other cheap communist manufacturing nations) and generate large profits as importers, without risk, quickly discovered that trading in 'bargains' is not without problems ! If you had read my post properly, you would see my empathy only referred to Jim McGreen and Gary Starr early attempts to develop the EV Industry. My empathy derives from my own experience. I7 years ago I arranged the funding for two similar EV ventures. Within a short time it soon became obvious that the neither of the enterprises were adhering to the approved business plans, and both enterprises were poorly managed. Because of my late wife's passion for the environmental causes, I agreed to take over the management of both companies, and merged the skills and resources. So I found myself in the EV business. I have learned the hard way, what a difficult (although fascinating) business the EV industry can be, even on a very small scale. I would never have purchased products from ZAP, nor would I have been an investor ! The US has some excellent small EV manufacturers like Polaris, Taylor-Dunn, Jacobsen etc. Fortunately, none of these manufacturers have attempted step into the vastly expensive, capital intensive, and complex industry of building passenger cars.
      Spec
      • 2 Years Ago
      I'm amazed this company still exists. Do they every actually make a profit? Or do they just burn up investor money?
        Spiffster
        • 2 Years Ago
        @Spec
        Last I checked they were still doing the latter.
        • 2 Years Ago
        @Spec
        I'm amazed companies and people don't research their historical blunders and lawsuits before going into business with them.
      Doug
      • 2 Years Ago
      Zap is still around? "Zap is best known for its three-wheel electric specialty cars, like the Zap Xebra" Should read "Zap is best known for bunch of press releases and broken promises."
      Dave D
      • 2 Years Ago
      Not even a real company. You might as well be reporting on two guys in a Denny's talking about their plans to take over the car world.
    • Load More Comments