The more I look at the emerging market for advanced technology vehicles, the more I see that ZAP is one of the only companies offering a selection of vehicles available for sale today. Buses can only enhance ZAP's overall business plan and I decided, rather than wait until the joint venture vehicles become available, to do something today that can benefit both companies. Also, my family and I have come to know Mr. Steve Schneider over the past year and this has become much more than a business relationship. I have complete confidence and trust in him and working together I believe we can make a difference for the world environment.
From Zap's point of view, the plan is to make some money off of these buses. ZAP CEO Steve Schneider said that, "These buses are highly profitable and will add to our marketing and distribution strategy."
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ZAP Signs Second Exclusive Distribution Agreement with Youngman for North American Bus Market
JINHUA, China and SANTA ROSA, Calif., Jan. 30 /PRNewswire-FirstCall/ -- Youngman Automotive Group, one of China's leading bus manufacturers, has signed a second exclusive distribution agreement with US electric car pioneer ZAP (BULLETIN BOARD: ZAAP) granting the rights to distribute its full line of buses in North America, the two companies announced jointly today.
Youngman has become a leading manufacturer of buses in China under the leadership of Chairman Pang Qingnian. The Company specializes in luxury motor coaches for tourism and corporate use as well as high quality public transportation for municipalities. Youngman's motor coaches have been issued a five star rating by the Chinese Ministry of Construction. The Company also builds high-quality commercial trucks and recently received one of a limited number of licenses to make automobiles from the Chinese government. A leader in China's manufacturing sector, Mr. Pang was recently elected as a Congressman for Zhejiang province.
"The more I look at the emerging market for advanced technology vehicles, the more I see that ZAP is one of the only companies offering a selection of vehicles available for sale today," said Youngman Chairman Pang. "Buses can only enhance ZAP's overall business plan and I decided, rather than wait until the joint venture vehicles become available, to do something today that can benefit both companies. Also, my family and I have come to know Mr. Steve Schneider over the past year and this has become much more than a business relationship. I have complete confidence and trust in him and working together I believe we can make a difference for the world environment."
Youngman is currently manufacturing and exporting six bus platforms available in 71 different configurations with the capacity to build 10,000 units annually. Youngman and ZAP expect to introduce buses using electric, hybrid and other advanced technology power trains as part of their joint venture. While today's agreement is based on conventional bus technologies, ZAP CEO Steve Schneider is looking forward to marketing energy efficient buses, particularly those that run on compressed natural gas.
"These buses are highly profitable and will add to our marketing and distribution strategy," said ZAP CEO Steve Schneider. "Youngman is already exporting to Russia, Germany, other parts of Europe and the Pacific Rim and we look forward to introducing these low-cost, high quality buses to the North American market. Initially our objective is to attract volume distribution to penetrate the market with a longer-term objective of creating economic growth and green collar jobs in California."
This is the second exclusive distribution agreement for ZAP with Youngman. In October 2007, the two companies signed a joint venture agreement to manufacture, market and distribute electric and hybrid vehicles for the passenger car, truck and bus markets. ZAP will focus on marketing and distribution while Youngman will contribute manufacturing and development resources. Albert Lam is the Chairman of the joint venture company as well as a member of ZAP's board of directors.
"Since joining ZAP I wanted to make a contribution towards the company's future. Bringing ZAP and Youngman together on this distributorship arrangement can take ZAP to the next level," said Mr. Lam, who stepped down as CEO of Lotus Engineering last year to be Chairman of the new joint venture company being established between ZAP and Youngman.
Lam added: "After completing a world tour with Steve Schneider and seeing the reactions on a global level from the manufactures, suppliers, distributors, and investors, I could not be more enthusiastic. The world is changing and it takes visionary companies with an entrepreneurial spirit like ZAP and Youngman to take a leadership role and make things happen."
About Youngman Automotive Group
Youngman recently introduced advanced manufacturing technology to its facilities in a joint venture with Neoplan of Germany. Youngman's manufacturing is based on the ISO9001 international standard of quality for its bus production. The manufacturing facility in Jinhua, China covers an area over four million square feet. Youngman employs 4,000 workers, including 700 research and development staff. With seven production facilities in process, Youngman expects to soon have the capacity to produce 200,000 vehicles per year, including a capacity to build 10,000 buses annually. For more information about Youngman Automotive Group, visit http://www.youngman-bus.com/.
ZAP has been a leader in advanced transportation technologies since 1994, delivering over 100,000 vehicles to consumers in more than 75 countries. At the forefront of fuel-efficient transportation with new technologies including energy efficient gas systems, hydrogen, electric, fuel cell, ethanol, hybrid and other innovative power systems, ZAP has a joint venture to manufacture electric and hybrid vehicles with Youngman Automotive Group, one of China's leading manufacturers of buses and trucks. ZAP is developing a high-performance crossover SUV electric car concept called ZAP-X engineered by Lotus Engineering. ZAP is also developing a new generation of vehicles using advanced nanotech batteries with Advanced Battery Technologies. The Company recently announced a strategic partnership with Dubai-based Al Yousuf Group to expand its international vehicle distribution. ZAP also makes an innovative, new portable energy technology that manages power for mobile electronics from cell phones to laptops. For product, dealer and investor information, visit http://www.zapworld.com/.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.