ZAP Jonway News

ZAP Jonway Announces Extension of US$19 Million Convertible Note

zapglobal — Thu, 29 Dec 2011 21:42:42 +0000

SANTA ROSA, Calif., Dec. 29, 2011 (GLOBE NEWSWIRE) — ZAP (OTCBB:ZAAP), also known as ZAP Jonway, a designer and manufacturer of electric vehicles (EVs), announced ZAP and China Electric Vehicle Corporation, or CEVC, an entity affiliated with Cathaya Capital, have agreed to extend the maturity date of the US$19 million convertible note held by CEVC until August 12, 2012.

Dr. Priscilla Lu, Chairman of ZAP and General Partner of Cathaya Capital, stated: “We are pleased with ZAP Jonway’s progress on its new EV model rollout planned for the first half of 2012. The ZAP and Jonway teams are working very well together with the common goal of executing on our new model rollout plan and delivering revenue from our next generation models. This extension gives the company time to achieve its 2012 deliverables and results.” CONTINUED===>

Jonway Group Funds $18.2 Million to ZAP Jonway to Bring 2012 New Products to Production: ALIAS and JNZ Shuttle – Gas and Electric

zapglobal — Mon, 19 Dec 2011 15:07:26 +0000

SANTA ROSA, Calif., Dec. 19, 2011 (GLOBE NEWSWIRE) — ZAP Jonway (OTCBB:ZAAP.OB – News), a designer and manufacturer of new energy and electric vehicles (EVs), entered a funding agreement with Jonway Group CO. Ltd., to pay for a total of $18.2 million for the already completed interior and exterior design and molding of the JNZ SHUTTLE Van; the completed engineering design, type approval certification and catalogue license of the gasoline transmission of the JNZ SHUTTLE Van; and the ALIAS interior and exterior design and molding, which is underway.

Alex Wang, Co-CEO of ZAP Jonway’s China operation, CEO of Jonway Automobile, and a Director of Jonway Group, stated: “Jonway Group, the original holding company of Jonway Automobile is committed to delivering industry leading full electric new energy vehicles to the market, utilizing the strengths of Jonway Automobile’s manufacturing with ZAP’s EV technology experience and design. We believed in the market potential of the JNZ SHUTTLE Vans and started this design more than a year ago in Jonway Group, funded by the holding company of Jonway Automobile, while ZAP Jonway evaluates the market potential of this new product line. After doing more extensive market research, ZAP Jonway believes the JNZ SHUTTLE Van for both EV and gasoline models have great commercial opportunities, especially in addressing our new strategy focused on the fleet applications. Jonway Group has been paying for the engineering design and molding for the JNZ SHUTTLE Van and will also pay for the ALIAS to go into production within 2012. These two project funding totals more than $18.2 million. The JNZ SHUTTLE Van engineering and molding work is already completed, and the ALIAS work is being completed. Jonway Group stepped in to fund this capital intensive development to ensure the delivery of these new models into production for 2012. The JNZ SHUTTLE Van is ready for production delivery in the second quarter of 2012, and the ALIAS is planned for the fourth quarter of 2012. We are pleased with the progress and the quality of the work done for these models, and we are committed in Jonway Group to support the financing to ensure that we are well positioned to offer competitive and attractive products.” ===> CONTINUED

ZAP Jonway Announcing New JNZ SHUTTLE Van for International Markets Available 1Q2012

zapglobal — Fri, 16 Dec 2011 22:15:03 +0000

Expands EV and Gasoline Product Line Focused on Fleet Markets

SANTA ROSA, Calif., Dec 16, 2011 (GlobeNewswire via COMTEX) — ZAP Jonway ZAAP -1.89% , a designer and manufacturer of gasoline and new energy electric vehicles (EVs), introduced its JNZ SHUTTLE, a multi-purpose van that can convert from passenger to cargo easily, targeted for the fleet markets and available for the international markets in the first quarter of 2012.

JNZ SHUTTLE Gas or Electric

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11263

The JNZ SHUTTLE gives ZAP Jonway an attractive platform to compete in the rapidly growing China auto industry for commercial fleet and delivery vehicles. The JNZ SHUTTLE is designed for both full electric and for gasoline and has more than 129 cubic feet of cargo space or with three rows of seats can fit up to seven passengers.

Alex Wang, Co-CEO of ZAP Jonway’s China operation and CEO of Jonway Automobile said, “An important piece of our strategy to attract fleet business is our JNZ SHUTTLE, which is ideal for fixed route deliveries and small passenger payload transportation. In addition, its availability in both gas and full electric models can further broaden our customer base. The competitively priced gasoline version of the JNZ SHUTTLE, which is priced below US$10,000, is targeted for developing countries where smaller shuttle vans with carrying capacities are ideally suited to maneuver through narrow city streets. The all-electric JNZ SHUTTLE is being planned for export globally, focusing initially on first-world countries with active programs to reduce city pollution and carbon footprint. THE JNZ SHUTTLE bolsters ZAP Jonway’s fleet product offering, further expanding our product range in international fleet markets. ZAP Jonway has assigned a separate marketing team to address business-to-business and business-to-government sales opportunities in China and will be ready to launch this product through its new channels in the second quarter of 2012.” ===> CONTINUED

ZAP Jonway Plans Limited Edition of ALIAS for Production Fourth Quarter 2012

zapglobal — Fri, 16 Dec 2011 21:20:07 +0000

SANTA ROSA, Calif., Dec. 16, 2011 (GLOBE NEWSWIRE) — ZAP Jonway (OTCBB:ZAAP.OB), a designer and manufacturer of new energy and electric vehicles (EVs), plans production of the ALIAS, ZAP’s highly anticipated sports EV, in the fourth quarter of 2012.

This limited edition production is now planned due to popular demand. It will showcase the engineering excellence of the ZAP Jonway’s EV power train and design. This 3-wheel version of the Alias is designed to be highway safety compliant and yet be able to expedite the long type approval testing process for entering into the U.S. market. Designed with decades of electric and automotive experience, the ALIAS serves a growing niche of automotive enthusiasts who want an affordable electric vehicle with the performance, looks and handling of an impressive sports car. The vehicle has a peak torque of over 200 kilowatts and range of 150 miles between charges. With one of the best engineered EV motors available supplied by Remy Motors, compact and light weight, the vehicle’s performance, handling and ride is competitive with traditional Tier One sports vehicles. ==> Continued Click Here

ZAP Jonway Reports Third Quarter 2011 Financial Results

zapglobal — Tue, 15 Nov 2011 22:45:02 +0000

SANTA ROSA, Calif.–(BUSINESS WIRE)– ZAP Jonway (OTC BB: ZAAP), a designer and manufacturer of gasoline and new energy electric vehicles (EVs), reported financial results for the three and nine months ended September 30, 2011.

Dr. Priscilla Lu, Chairman of ZAP Jonway, stated: “As we began laying the foundation for growth, the past several months have been transformative for ZAP Jonway. ZAP’s acquisition of 51% of Jonway Auto in January of 2011 was the first step in our initiative to establish a combined company that features strong manufacturing capabilities, an established distribution platform and a 17-year history of EV innovation. More recently, we appointed Mr. Zhang Da Qi as General Manager at Jonway Auto who will provide key leadership in our sales expansion initiatives. Our new product roadmap reflects our adherence to market relevance by focusing on delivering a high-quality yet affordable new energy electric vehicle product line targeting the fleet market, applying the same principles that Jonway has with its gasoline vehicles.”

“As we expand our product line in 2012 to launch our EV models, we plan to develop new channels that address sales opportunities with institutions, governments and corporations while utilizing the established network of nationwide dealerships we already have in place for selling direct to consumers. Mr. Zhang Da Qi, with his extensive experience in the Chinese auto industry, will offer new product packages that are attractive to large volume buyers,” concluded Dr. Lu.

Recent Company Highlights

Introduced first joint product roadmap for 2011/2012 featuring new traditional gasoline and new energy electric vehicle models.
Extended warranty period demonstrates ZAP Jonway’s commitment to quality with its core engine technologies using the Mitsubishi gasoline drive train, thus leading the Chinese auto industry with an unprecedented five-year warranty for its automobiles manufactured in China.
Expanded and relocated sales and customer support center to Hangzhou, a vibrant technology center in the Zhejiang Province of China, to be in close proximity to its new energy vehicle R&D center and to increase access to talent for expansion plans.
Appointed Mr. Zhang Da Qi as General Manager of Jonway Auto to lead sales and operations initiatives, leveraging his 20 years of experience working with leading Chinese auto companies.

Benjamin Zhu, ZAP Jonway’s Chief Financial Officer, stated: “Our consolidated financial results for the three- and nine-months ended September 30, 2011 reflect the financial consolidation of ZAP and Jonway Automobile as a result of the majority acquisition completed in January of this year. ZAP’s financial results for the 2010 periods reflect only ZAP’s results on a standalone basis. The 2011 financial results are also demonstrative of the transition we have undertaken wherein we recorded several administration costs related to the acquisition. We are at the tail end of this process and can now begin to leverage and maximize the synergies between the two companies.”

Please note as the company acquired 51% of Jonway operations in January 2011. As such, when comparing year-to year the results of the consolidated financials this year of the combined companies, they increased compared to ZAP’s standalone financials from 2010.

Consolidated Financials for the Three Months Ended September 30: 2011 Compared to 2010

Net sales were $14.1 million including $13.7 million contributed by Jonway, compared to $985,000.
Gross profit was $2.1 million, including $2.0 million contributed by Jonway, or 15.2% of sales, compared to gross profit of $148,000, or 15.0% of sales.
Operating expenses were $7.3 million including both $3.9 million related to Jonway and non-cash charges of $1.2 million related to quarterly amortization of distribution agreements for Jonway products and Better World’s charging stations and quarterly fees related to a management agreement between ZAP and Cathaya Capital. This compares to operating expenses of $1.9 million. The increase from Jonway was due primarily to increases in sales and marketing, general and administrative, and research and development related to the addition of Jonway and the integration of EV technology.
Net loss was $8.9 million, or $0.04 per diluted share, compared to net loss of $2.3 million, or $0.02 per diluted share, including total comprehensive loss of $1.1 million contributed by Jonway.
At September 30, 2011, cash and cash equivalents was $1.5 million.

Consolidated Financials for the Nine Months Ended September 30: 2011 Compared to 2010

Net sales were $42.1 million including $40.0 million contributed by Jonway, compared to $2.7 million.
Gross profit was $4.8 million including $4.3 million contributed by Jonway, or 11.3% of sales, compared to gross profit of $364,000, or 14.0% of sales.
Operating expenses were $24.9 million, including $11.2 million related to Jonway and non-cash charges of $3.5 million related to amortization of distribution agreement for Jonway products and Better World’s charging stations and fees under a management agreement between ZAP and Cathaya Capital. This compares to operating expenses of $7.2 million. The increase from Jonway was due primarily to increases in sales and marketing, general and administrative, and research and development related to the addition of Jonway and the integration of EV technology.
Net loss was $29.5 million, or $0.14 per diluted share, compared to net loss of $7.6 million, or $0.07 per diluted share, including total comprehensive loss of $3.1 million contributed by Jonway

Conference Call Information

ZAP Jonway’s management team will hold a conference call today, Tuesday, November 15, 2011 at 1:30 p.m. PT / 4:30 p.m. ET (5:30 a.m. on Wednesday, November 16, 2011 in China) to discuss its third quarter 2011 earnings results, review the quarterly activity and answer questions. Investors in the United States may participate in the call by dialing (877) 280-7473, and international participants may dial (1-707) 287-9370. The conference ID is 25418272 and participants are encouraged to dial 10 minutes prior to the call to prevent a delay in joining. A live webcast of the conference call is scheduled to be available on ZAP Jonway’s corporate site at http://www.zapworld.com/Investors. For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company’s corporate site for 90 days. A telephone replay of the call is also scheduled to be available through November 17, 2011. To listen to the telephone replay dial (855) 859-2056 or dial (1-404) 537-3406 outside the United States, and enter pass code 25418272.

About ZAP Jonway

ZAP Jonway combines the attributes of both companies, ZAP and Jonway Automobile, to design and manufacture quality, affordable gasoline and new energy electric vehicles (EVs). With Jonway Automobile’s established ISO 9000 manufacturing facilities, research and development and sales and customer services facilities in China, ZAP Jonway is well positioned to scale up production and sales for both gasoline and EVs for China and the international markets. ZAP, an early pioneer of EVs, brings to the new combined company a broad range of EV design experience that is being applied to new product lines. ZAP Jonway is focused on addressing EV fleets targeting city delivery trucks and vans used by university campuses, government and corporate markets in China and the United States, while utilizing its gasoline vehicle production quantities to gain economy of scale through its common vehicle parts and platforms. ZAP Jonway benefits from the established China dealership and customer support network developed by Jonway Automobile for its China sales and services. ZAP Jonway is headquartered in Santa Rosa, California and its production facility is located in Zhejiang Province of the People’s Republic of China. Additional information about ZAP Jonway is available at http://www.zapworld.com.

Forward-Looking Statements

This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of ZAP’s products, increased levels of competition, new products and technological changes, ZAP’s dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in ZAP’s periodic reports filed with the Securities and Exchange Commission.

For financial tables, visit the ZAP Jonway Website.

Contact:

Investor Contact:
LHA
Becky Herrick, +1-415-433-3777
bherrick@lhai.com
or
Company Contact:
ZAP Jonway USA
Alex Campbell, +1-707-525-8658 ext. 241
acampbell@zapworld.com

ZAP Jonway Announces First Product Roadmap Leveraging Subsidiaries’ Strengths

zapglobal — Tue, 15 Nov 2011 13:42:47 +0000

Focusing on New Energy Efficient Gasoline and Full Electric Vehicle Models Utilizing Common Platforms

SANTA ROSA, California – November 15, 2011 – ZAP Jonway (OTC BB: ZAAP), a designer and manufacturer of gasoline and new energy electric vehicles (EVs), after extensive strategic planning and integration development, announced its joint product roadmap for 2012. The roadmap is focused on delivering affordable and technologically competitive new gasoline and EV models that address the growing market demand.

Dr. Priscilla Lu, Chairman of ZAP Jonway, stated: “The new ZAP Jonway models planned for delivery in 2012 maximize the strengths of both subsidiaries, ZAP and Jonway Auto. The new models utilize the experience base and the combined resources from both subsidiaries to accelerate the new EV models’ time to market, while maintaining the originally planned introduction of Jonway’s new gasoline models to the market in 2012. The new JNZ product line is designed to address EV platform requirements while remaining adaptable to either gasoline or an electric power train.”

Alex Wang, CEO of ZAP Jonway stated: “We are introducing a line-up of EV automobiles that will showcase our product quality and technology, and reposition the new ZAP Jonway brand. We are pleased to be able to expand the capabilities of Jonway Auto’s ISO:9000 certified factory to now include the new EV production line. We have engineered the integration of Mitsubishi drive trains in our gasoline vehicles to include industry-leading five-year warranties in China. We have jointly integrated and developed technologies to support Remy Motors’ industry-leading EV power train in our core EV platform for our top of the line EV models. Working together as one team to deliver these new models demonstrates our joint commitment to become a competitive supplier in the New Energy Vehicle market in China and the rest of the world.”

ZAP Jonway’s new JNZ product line-up builds the company’s portfolio of quality, affordable vehicles, merging its EV and gasoline platforms to utilize common parts, manufacturing facilities, channel markets and expertise. The EV models all use the same power train design, adjusting only on the amount of lithium battery packs provisioned depending on the model and targeted applications. To adapt to fleet market requirements, where price and performance dictate product capabilities, the EV models come in two ranges: a version with a 250km range (150 miles); and a version with a 160km range (100 miles). The motor power also comes in two ranges: the first has 175 kilowatt peak power; with a max speed of over 120 mph, and the second has 80 kilowatt peak power; with a max speed of 80 mph. Since lithium batteries dominate the cost and weight of the EVs, the two models are designed to adapt to the fleet application needs.

JNZ Product Roadmap

First Quarter 2012

JNZ A380 G-5 (Five-door, new look 2012 gasoline model SUV): The new A380 gasoline five-door SUV will feature a new stylized and streamlined look. Today, this same model is the main platform currently selling in China, offering quality and affordability with a Mitsubishi drive train and Borsch Engine Control Unit (ECU). ZAP Jonway is currently completing the required in-country homologation certificates to launch the gasoline A380 SUV into the international markets, which include countries in Latin America, South East Asia, Africa and the Middle East. The A380 3-door SUV, popular among young urban professionals, is also among the first Chinese SUVs to meet international standards for quality and approved for importation into the European Union via an Italian distributor.
JNZ A380 EV-5 (Five-door full electric vehicle model SUV): The company is currently completing type approval for the A380 EV-5 and anticipates it will be ready for production delivery during the first half of 2012, available for export at the end of the first quarter of 2012, and available for sales in China during the second quarter of 2012.

Second Quarter 2012

JNZ A 380 G-3 (Three-door 2012 model SUV): The three-door A380 has a new “sporty” look and new molds. Its smaller chassis and lighter weight targets young professionals and is an ideal model to leverage for the EV platform. The three-door A380 model underwent EU type approval through Jonway’s Italian partner last year, and was one of the first Chinese SUVs to meet international gasoline type approvals. This will be further enhanced to meet the new EU 5 standards.
JNZ A380 EV-3 (Three-door full electric vehicle model SUV): The EV version of the three-door A380 SUV is expected to be available for export at the end of the first quarter of 2012 and available for sale in China during the second quarter of 2012.

Third and Fourth Quarter 2012

JNZ SHUTTLE-EV and JNZ SHUTTLE-G (Electric and gas passenger/cargo van models): The JNZ SHUTTLE is ideal for EV market and is being planned for export markets globally, and is particularly suitable in first world countries, conscientious of going “green” by reducing city pollution, which is particularly relevant to fixed route deliveries and small passenger payload transportation. The competitively priced gasoline version is targeted for developing countries where smaller shuttle vans with carrying capacity are ideally suited to maneuver through narrow city streets. ZAP Jonway has assigned a separate marketing team to address business-to-business sales and business-to-government opportunities.
JNZ A280-EV and A280-G (Electric and gasoline compact SUV models): The JNZ A280 compact mini SUV, currently under development, is a lighter, more versatile platform the company expects will accelerate EV adoption in urban centers around the world, including the US market. The A280 is expected for production by the end of 2012/the beginning of the first quarter of 2013.
JNZ ALIAS: The ALIAS, planned for delivery at the end of 2012, is a three-wheel sports vehicle designed to be highway ready with the necessary crash-tested safety requirements. The ALIAS was designed by ZAP for the consumer EV market. This three-wheel design enables the ALIAS to be homologated as a motorcycle while addressing the need for crash test safety, including normal vehicle regulation air bags. ALIAS leverages the existing infrastructure of Jonway motorcycles and its dealer network, and will use a similar EV drive train to the A380 but engineered for response and acceleration. Although not part of the fleet market product line of ZAP Jonway, it is intended to be produced in limited quantities to showcase the company’s engineering and technology capabilities.

About ZAP Jonway

Forward-Looking Statements

Investor Contact:

Becky Herrick
LHA
+1-415-433-3777
bherrick@lhai.com

Company Contact:

Alex Campbell
ZAP Jonway USA
+1-707-525-8658 ext. 241
acampbell@zapworld.com

ZAP Jonway Leads Chinese Market with Five-year Warranty on Full Mitsubishi Drive Train

zapglobal — Tue, 15 Nov 2011 00:16:32 +0000

Demonstrates Commitment to Quality in its Drive Train Technology

SANTA ROSA, Calif., Nov 14, 2011 (BUSINESS WIRE) — ZAP Jonway (OTC BB: ZAAP), a designer and manufacturer of gasoline and new energy electric vehicles (EVs), extended its Mitsubishi drive train warranty on all its manual transmission (1.6 liter, 1.8 liter and 2.0 liter) and automatic transmission vehicles, standing behind the company’s commitment to its product quality and specifically in the core engine technology quality.

This five-year warranty leads the Chinese market where most local auto manufacturers use locally made and designed engines and transmissions with one or two year limited warranty periods. Jonway’s A380 G-5 and A380 G-3 gasoline sports utility vehicles (SUV) are the only SUVs designed, produced and sold in China that include both an internationally acclaimed drive train leader, Mitsubishi, and an extended five-year warranty. Jonway’s Mitsubishi power train and transmission are integrated with a Bosch engine control unit (ECU), which manages and controls the emissions and power of the overall engine.

“Delivering quality in our technology, in customer service and in overall product support are the priorities and the core values of our business,” said Alex Wang, Co-CEO of ZAP Jonway’s China operations. “We extended to a five-year warranty on our Mitsubishi power train to show our dedication and confidence in offering quality in our products. Our commitment to producing best in class vehicles is what we believe differentiates ZAP Jonway in the marketplace. We also believe we are currently the only Chinese automaker who offers a complete Japanese drive train system with a German ECU. We expect the quality of our core engine technology is one of the driving reasons that international partners in Brazil, Thailand, Russia and the Middle East have sought us out to be their preferred partners in their respective markets. Our automatic transmission SUV that utilizes the Mitsubishi drive train is the first to be offered in the Chinese market, a key reason behind the increased popularity and demand for this vehicle from customers.”

ZAP Jonway has a distribution network of over 300 dealers and sub dealers, as well as 230 customer service center partners in every province of China and is providing support and promotion of this new five-year warranty program for the new models to its customers. ZAP Jonway plans to add a special sales force in Shanghai to address fleet sales to government institutions and business corporations, where product quality, support and reliability are keys to the company’s success.

About ZAP Jonway

Forward-Looking Statements

Investor Contact:

Becky Herrick
LHA
+1-415-433-3777
bherrick@lhai.com

Company Contact:

Alex Campbell
ZAP Jonway USA
+1-707-525-8658 ext. 241
acampbell@zapworld.com

ZAP Jonway to Report Third Quarter 2011 Results on November 15, 2011

zapglobal — Thu, 10 Nov 2011 09:25:26 +0000

SANTA ROSA, Calif., Nov 10, 2011 (BUSINESS WIRE) — ZAP Jonway ZAAP -2.94% , a manufacturer of gasoline and new energy electric vehicles (EVs), announced it will hold a conference call at 1:30 p.m. PT/4:30 p.m. ET on November 15, 2011 (5:30 a.m. November 16)(5:2011 in China) to discuss its third quarter 2011 earnings results.

Investors in the United States may participate in the call by dialing (877) 280-7473, and international participants may dial (1-707) 287-9370. The conference ID is 25418272 and participants are encouraged to dial 10 minutes prior to the call to prevent a delay in joining. A live webcast of the conference call is scheduled to be available on ZAP Jonway’s corporate site at http://www.zapworld.com/Investors .

For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company’s corporate site for 90 days. A telephone replay of the call is also scheduled to be available through November 17, 2011. To listen to the telephone replay dial (855) 859-2056 or dial (1-404) 537-3406 outside the United States, and enter pass code 25418272.

About ZAP Jonway

ZAP Jonway combines the attributes of both companies, ZAP and Jonway Automobile, to design and manufacture quality, affordable gasoline and new energy electric vehicles (EVs). With Jonway Automobile’s established ISO 9000 manufacturing facilities, research and development and sales and customer services facilities in China, ZAP Jonway is well positioned to scale up production and sales for both gasoline and EVs for China and the international markets. ZAP, an early pioneer of EVs, brings to the new combined company a broad range of EV design experience that is being applied to new product lines. ZAP Jonway is focused on addressing on EV fleets targeting city delivery trucks and vans used by university campuses, government and corporate markets in China and the United States, while utilizing its gasoline vehicle production quantities to gain economy of scale through its common vehicle parts and platforms. ZAP Jonway benefits from the established China dealership and customer support network developed by Jonway Automobile for its China sales and services. ZAP Jonway is headquartered in Santa Rosa, California and its production facility is located in Zhejiang Province of the People’s Republic of China. Additional information about ZAP Jonway is available at http://www.zapworld.com.

Investor Contact:

LHA Becky Herrick
+1-415-433-3777
bherrick@lhai.com
or
Company Contact:
ZAP JONWAY USA
Alex Campbell
+1-707-525-8658 ext. 241
acampbell@zapworld.com

ZAP Jonway Relocates Sales and Customer Support Headquarters to Hangzhou, China as Part of Expansion Plans

zapglobal — Tue, 08 Nov 2011 14:52:47 +0000

Strategic Move to be in Close Proximity to Its New Energy Vehicle R&D Center and to Increase Access to Talent for Expansion

SANTA ROSA, Calif., Nov. 8, 2011 (GLOBE NEWSWIRE) — ZAP Jonway (OTCBB:ZAAP), a manufacturer of gasoline and new energy electric vehicles (EVs), relocated its domestic sales and customer support headquarters from Sanmen, a small town in Zhejiang Province south of Ningbo, to Hangzhou, a vibrant technology center in the Zhejiang Province of China. The move further establishes the company’s presence in one of the up-and-coming automotive centers in China, where ZAP Jonway’s EV research and development team resides and where Jonway’s license holding company, UFO, is currently located.

ZAP JONWAY General Manager Mr. Da Qi Zhang

“I initiated and am leading the relocation of our sales and customer support headquarters to Hangzhou as part of our plan to strengthen our sales and marketing presence,” said Mr. Da Qi Zhang, General Manager of ZAP Jonway. “Our goal is to complete the relocation quickly, before the end of this year, so that we can be settled in to our new location at the start of 2012. Moving our domestic sales headquarters to Hangzhou will improve our marketing and branding efforts, increase our access to local talent to build our business, and establish a strong presence in a technology-focused region where sales of our EV models will begin in 2012.”

Alex Wang, ZAP Jonway’s Co-CEO, stated: “Mr. Zhang’s urge to move the sales and customer support headquarters to Hangzhou provides the foundation for moving our EV manufacturing from Sanmen to a new EV plant in Hangzhou as well. Jonway Automobile has been evaluating the establishment of a new manufacturing plant for our new EV product line in Hangzhou for some time, particularly as our EV R&D center as well as our UFO brand and license holder are headquartered in Hangzhou.”

The company expects to relocate 86 customer support and sales personnel to Hangzhou. The move is expected to be completed no later than the end of this year.

With a population exceeding nine million, Hangzhou is the capital and largest city of Zhejiang Province in Eastern China, about 110 miles south of Shanghai. Its economy has rapidly expanded over the past two decades. Its GDP in 2010 was US$887 billion (594.5 billion RMB) ranked 8th in China’s cities. It is one of the advanced technology centers of China, with R&D and manufacturing for telecommunications and consumer electronics, and fast becoming a new energy vehicle automobile manufacturing hub for China.

About ZAP Jonway

The ZAP Jonway logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10607

CONTACT: Investor Contact:
Becky Herrick
LHA
+1-415-433-3777
bherrick@lhai.com

Company Contact:
ZAP Jonway USA
Alex Campbell
+1-707-525-8658 ext. 241
acampbell@zapworld.com

Zhang Da Qi, 20-year Automotive Veteran, Appointed General Manager of Jonway Auto Operations and Sales

zapglobal — Tue, 01 Nov 2011 16:19:50 +0000

FAW Sales Veteran Strengthens Strategic International Sales Efforts

SANTA ROSA, Calif., Nov. 1, 2011 (GLOBE NEWSWIRE) — ZAP Jonway (OTCBB:ZAAP.OB – News), a designer and manufacturer of gasoline and new energy electric vehicles (EVs), appointed Zhang Da Qi as General Manager of Jonway Auto/Operations and Sales. In this role, he will focus on strengthening the company’s marketing and sales organization and its supporting operations. Mr. Zhang reports directly to co-Chief Executive Officer, Wang “Alex” Gang.

Alex Wang, co-Chief Executive Officer of ZAP Jonway, stated: “Zhang brings over 20 years of automotive management experience. He spent fifteen years, working with general manager responsibilities, in one of the automotive divisions of First Auto Works (FAW), ranked third largest in China. He has a proven track record in building up a strong sales team that delivered several tens of thousands of vehicles per year. He also led the sales team during the formative years at Zotye Auto, a private automobile company based in Hangzhou, where he was instrumental in building up sales from scratch in a short couple of years’ time and delivered over 30,000 vehicles per year.”

Mr. Da Qi Zhang

Chairman of ZAP Jonway Priscilla Lu stated: “Mr. Zhang’s successful experience in his former companies, in building strong dealership networks, is vital to our next level of growth. He believes in shaping the company’s strategy and priorities based on market feedback and sales performance. Zhang, with strong sales background and general manager experience, is a valuable addition to the new team that Alex Wang, our co-CEO, is putting in place to lead the company towards our goal of becoming one of the leaders in delivering quality products in China’s automotive industry.”

Mr. Zhang added: “I look forward to applying my skills and experience in the automotive industry to help drive ZAP Jonway’s growth. ZAP Jonway, with its new EV product line differentiated by competitive technology that is ready to launch next year, is well positioned to address China’s new energy vehicle market;…”

More at ZAPJONWAY.COM

ZAP Jonway Appoints 20-Year Chinese Automotive Veteran Zhang Da Qi as General Manager of Jonway Auto/Operations and Sales