ZAP CEO - Steven Schneider

Welcome to ZAP Jonway

It is our pleasure to introduce ZAP Jonway; a newly formed U.S-China high tech automaker focused on commercializing cost-effective electric and advanced technology electric vehicles for global markets. The Company combines ZAP’s extensive electric vehicle design experience with Zhejiang Jonway Automobile’s manufacturing production capabilities and Chinese market access.  Jonway Automobile is ISO 9000 compliant, and has production capacity to accommodate manufacturing production volume of over 50,000 vehicles per year.  ZAP acquired a 51 percent majority stake in Jonway Auto in January 2011, to form a new company focused on the emerging electric car market in China building on the foundation of the traditional vehicle business. China is the fastest growing automotive market in the world, leading the U.S. with over 18 million new automobile sales last in 2010, compared to 11 million in the U.S.

The 51% acquisition of Jonway Automobile by ZAP was approved by the Chinese Government, and the transaction was completed in January 2011 upon completion of the financial audits.

The acquisition gives ZAP a solid platform for EV product delivery and economies of scale to build a sophisticated electric automotive division that can compete in the emerging global market for alternative energy vehicles.  Sales of Jonway Auto’s SUV increased last year to over seven thousand, and the Company expects continued double digit percentage growth in sales and revenues this year.

ZAP’s EV strategy is to address the corporate and government EV fleet businesses, leveraging on volume to reduce cost and refine quality of the products. ZAP Jonway is expanding its 89 direct dealership and over 230 customer support centers in China. The emphasis is on delivering quality products as well as service support.  The team will be placing priority on improving the quality of the vehicles, improving customer support for its dealers and customer support centers.  New programs will be put in place in 2011 to offer qualified dealers and customer financing, and to encourage continued customer feedback to raise our product quality.  Extended warranty programs will be offered to buyers to expand our commitment to stand behind the quality of our products. This warranty program will also increase the visibility for what can be improved to enhance quality and increase our market competitiveness.

Jonway Automobile will be offering two new products in the latter part of this year, the 7-passenger mini van, and a new model for the 3-door SUV.  Both of these new models will be introduced as gasoline vehicles initially with the Mitsubishi 1.6L engine.  The objective is to be able to deliver the electric vehicle versions of this within 6 months of introducing the gasoline model.

Chairwoman, Dr. Priscilla Lu, who is the founder and general partner of Cathaya Capital, a Cross Border Fund focused on China, has led the effort in the merger of these two companies. Dr. Lu has served as Chairman of the Board for ZAP since September 2009 and through Cathaya Capital has invested US$36 million in ZAP to make this Jonway Automobile acquisition possible.

We look forward to working as One Team, One Company and One Goal, and that is to be the Best Alternative Energy Automobile Company Globally.

Sincerely,  

Steven Schneider                                                                      Alex Wang

Co-CEO of ZAP Jonway                                                         Co-CEO of ZAP Jonway