Dealers Respond to Attack on ZAP

To Whom It May Concern: I am baffled to have read such a negative publication a few days ago. Reading the article really hit me where it hurts… Five years ago my parents and I walked through the ZAP HQ doors in Santa Rosa, CA and saw a shared vision for Electric, Zero Emission Vehicles. We became very excited about the variety of LSV’s marketed under the ZAP name demonstrated to us that afternoon by Elliot Winfield, such as the Intimidator, the Dynasty, and even the World Car. I also saw the very beginnings of a potential arrival of the Smart Car to the U.S. and we decided without further hesitation to commit ourselves to that even slim reality. I recently read that one of the ZAP cars certain reporters claimed to not exist was the Smart Car. I personally experienced and patiently waited while ZAP diligently invested $10 million to homologate the Smart Car for the USA. Two years went by and the Smart Cars finally did arrive and yes it took much longer than anyone anticipated but fine…they still got here years before anyone else (even Smart’s own manufacturer) got the clue that there was an enormous demand for the car. I bought and sold 87 of those cars that “didn't exist”. The Smart Car days were glorious! Foreign Affairs delivered over 80 Smarts around the South East U.S. to eager customers willing to pay even huge market prices of $34k+ in order to be one of the first proud owners of a new Smart Car. The Smart Car years were record-breaking years for us but along with success came a lot of responsibility. I proudly say that every single owner of a Smart Car Americanized by ZAP that purchased a car from Foreign Affairs has experienced nothing but our absolute best. We have made sure that every single person that purchased a Smart from us, no matter how far they were or where the car was, had their warranties honored. We worked very hard to maintain extraordinary relationships with our Smart Car customers, as we do with everyone who enters our doors. I was saddened to hear that the Smart Car venture came to an abrupt halt so quickly because Smart’s manufacturer realized there was indeed a great amount of demand, but I was prepared for it from the beginning. I knew it most likely would be a short-term venture with the ever so possibility of Daimler wanting the bring the cars themselves so we had to make the very best of it from day one, and we did. And I thank ZAP for the opportunity in allowing Foreign Affairs to be a part of U.S. Automotive History. Moving on, we were offered a new vehicle…this funky, weird, three-wheeled, Electric, somewhat truck, named the XEBRA. Being accustomed to the symmetrical “art-design” of theSmart, my first reaction was… “WOW, that is ugly!” but as I researched more into the EV market I found that the ZAP XEBRA was the only production EV available that could obtain such speeds and actually be driven on regular roads in contrary to the governed LSV. I began to understand the literal hundreds of ideal applications and usages that the XEBRA could fill. One must understand that operating an EV dealership is not the most lucrative venture in the world…yet. It is a beginning. It is about being in on the ground floor for the future. I recently read about some ZAP dealers that couldn’t make it. It is so clear to me why…unfortunately, with all respect, they made a very bad business decision. An Electric Vehicle Dealership cannot survive solely on its own. You cannot expect to sit behind your desk and wait for the people to walk right through your doors and expect to pay the overhead yet alone make a living or even as some imagine “get rich quick”. In order to establish yourself as an EV dealership, you must have another core business to be able to carry the operation for some time until you work very hard in recognizing your target market and getting out there to create awareness . You must convince people that you donot need a huge car just to go back and forth doing short commutes. Foreign Affairs, a luxury automobile dealership for over 25 years, is able to successfully and profitably add a ZEV division to its business model. I sympathize greatly with those who invested lots and could not make it because I know what it is like to be a small business owner, but at the same time shame on them for not doing the proper due-diligence prior to the commitment. Don’t try to blame others for your own negligence. I want to see ZAP succeed. I know ZAP can and I know ZAP will. There is just too much potential behind ZAP. I interpreted the negative press to be an evident, full blown, one-sided attack on ZAP. I am able to relate to some of the obstacles and difficulties stated with my own experiences but they are forgiven and forgotten as they are expected growing pains. I kindly invite anyone in disbelief to interview me or enter my showroom doors to see first-hand simple evidence that an Electric Vehicle Dealership can be viable if done the right way. Respectfully, Jonathan Ortiz Foreign Affairs 1681 North Military Trail West Palm Beach, FL 33409 T: (561) 478.9999 F: (561) 689.7000 www.foreignaffairsauto.com April 2008 To ZAP: Front page of our local paper: "Oil companies profits contineu to rise as gas breaks $4". The content of the article documents how the price of fuel is contributing to the decline of our economy while big oil gets fatter and fatter off profits. I do not use gas unless I am going out-of-town. My silly little truck gives me more satisfaction than any ICE I have ever owned (and I am a car buff). I deal directly with ZAP every day, but you will not see me sheding tears of self-pity with the failed dealers trying to blame ZAP. The auto business is tough, and the failures of the dealers has as much to do with their inexperience as it did with ZAP's over-zealous claims. Even with all their warts, ZAP is still far ahead of anyone else in the industry, and we continue to have a good working relationship with them. -- Sean Rarey Grants Pass Electric Vehicles www.gpev.us