After celebrating 12 years in business earlier this week, Zap! announced a new joint venture with Chinese car-maker Shandong Jindalu Vehicle Company Ltd. They are going to work together on developing further new low-cost alternative transportation vehicles. China currently has tremendously bad smog problems in its major cities like Beijing and Shanghai and needs to develop cleaner cars.
Most of the existing cars being built in China are through joint-ventures with Western car-makers like Volkswagen or General Motors as well as some of the Japanese companies and are based on previous generations of cars sold in the other markets. The native Chinese designs so far are generally based on older technology as well. Zap has already developed quite a bit of expertise in building small electric cars. Now the Chinese want to combine that knowledge with their low cost manufacturing capabilities. This could make for a formidable combination and could really bring electric cars to the masses, at least in the Chinese market. The full press release is after the jump.
Electric Car Company ZAP Signs Agreement to Form China Joint Venture
SANTA ROSA, CA and DEZHOU, CHINA--(MARKET WIRE)--Sep 27, 2006 -- ZAP (NYSE Arca: ZP), Zero Air Pollution, announced today it has signed an agreement to form a joint venture with China auto manufacturer Shandong Jindalu Vehicle Company Ltd. The joint venture involves designing and manufacturing of a new generation of low cost advanced transportation vehicles that run efficiently on gas, electricity, ethanol and other advanced technologies and fuels.
More than half of petroleum produced is used to fuel transportation, according to officials from ZAP and Shandong Jindalu. Petroleum is a major contributor to global warming and pollution which damage the environment.
ZAP has established an office in Dezhou, China, to facilitate the joint venture. Officials from ZAP and Shandong Jindalu expect to announce more developments shortly. Entrepreneurs, capitalists, governmental and educational institutions throughout China and the world have been invited to join in the effort. Those in the industries of energy storage, battery manufacturing, solar energy, engine development, new material design, automobile manufacturing and parts and supplies as well as engineering and design are encouraged participate.
"Our work with ZAP's various micro-cars like the cost effective electric XEBRA has shown that new approaches to transportation are possible," said Gary Starr, Chairman of ZAP. "Visionary dealers are taking the pioneering steps to offer our new lines of vehicles. Scientists, climate and pollution data and the current state of affairs as well as the price of oil are telling us that we must change our ways. What is needed is real leadership. We are proud to be part of a true collaboration between the USA and China in the manufacturing, design and distribution of our first generation of ZAP cars."
Starr added that much more can be done. The purpose of the joint venture is to further develop these ideas and distribute new generations of low cost energy efficient vehicles throughout the world, including a high efficiency gas vehicle and other electric vehicles.
"Although many companies talk about doing things for the environment, we are proud to be part of a joint venture in which both parties are dedicated toward bringing vehicles to the market that can bring not only good returns to our shareholders, but the planet as well," said Mr. Lu, President of Shandong Jindalu.
"We have searched all through China, and have found Mr. Lu to be unique in his entrepreneurial spirit. Having worked closely with him for over one year, we feel we have found a trustworthy and dedicated partner, and we invite other entities to join with us in this venture," said Gary Starr, Chairman of ZAP.
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, alcohol, hybrid and other innovative power systems. For more information, visit http://www.zapworld.com.
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.
[Press Release Source: ZAP]