ZAP acquires Jonway Automobile

Electric vehicle market pioneer ZAP, based in Santa Rosa, Calif., U.S.A., announced that it has completed its acquisition of 51% of the capital stock of Zhejiang Jonway Automobile Co. Ltd. of Sanmen, Zhejiang, China. Total cash payment for the acquisition of 51% of Jonway Automobile was US$30,030,000. With ZAP’s electric vehicle (EV) technology expertise and international experience, the combined company intends to build the necessary production platform to address the Chinese EV market. The newly combined company, to be renamed ZAP Jonway, will leverage Jonway Auto’s A380 SUV, as well as its established distribution channels to the Chinese market with more than 90 direct dealers. ZAP Jonway will manufacture and sell SUVs powered by ZAP’s electric drive train and expects to benefit from the 60,000 yuan (US$9,102.36) government incentives granted to electric car buyers. (January 25, 2011)