According to the Cleveland Plain Dealer, drivers in Ohio are facing problems when it comes time to register their electric three-wheeled vehicles. Most states classify three-wheelers as motorcycles, but Ohio adds one more item to their definition of a motorcycle: a saddle. This means that three-wheelers which have a normal "car-like" seat are unregisterable as a car, because they have fewer than four wheels, or a motorcycle. Two vehicles are mentioned in our source article, the ZAP! Xebra and the NmG from Myers Motors (pictured above), a company based, ironically enough, in Ohio. According to Josh Engel, chief legal counsel for the BMV, "It's not the first time that the law hasn't caught up with technology," adding that the state of Ohio is supportive of electric vehicles. Basically, the law needs to change, and Tom Hunter, communications director for the BMV, suggests that the real solution would be to classify the vehicles as neither cars nor motorcycles. A special class of vehicle would be created, and hopefully a motorcycle endorsement would not be required. We'll keep you updated if anything new comes of this issue. Thanks for the tip, Ken.
It's Earth Day, so we would have been shocked to see the day slip by without a press release from Zap about their something or other. True to form, the EV company presents us with news that the Sopraffina Marketcaffe in Chicago will be using an electric Xebra truck with solar panels on the roof in its catering business (read more after the jump). Can't let the Ford Transit Connect have all the food fun, right?
The Xebra is Zap's one legitimate electric vehicle that has more than two wheels, but it does have some drawbacks compared to a "real" car because it's classified as a motorcycle. Still, for deliveries in downtown Chicago, running on electrons is a pretty good plan. Not a lot of sunlight reaches the street in the middle of the Windy City, but if you're on Lakeshore Drive, those panels should be able to suck up some juice. The three-cents-a-mile operating cost has got to be appealing to the business owners as well.
ZAP has proven to be an excellent company when it comes to issuing press releases. They have also offered some nice products in the past, like the Zappy line of scooters. For some, the Xebra (see gallery below) fits their needs quite nicely, and for those people, ZAP is a fine company. For the rest of us, the chances that the ZAP X SUV, ZAP Alias or Detroit Electric brand ever get off the ground seems awfully slim.
The Los Angeles Times has an article taking a look at the the four most prominent California-based electric vehicle start-ups and the difficulties they face. The article touches on Phoenix Motorcars, Zap, Fisker and, of course, Tesla. A lot of what the article covers has already been discussed around these parts on numerous occasions but for those playing catchup, it's a decent primer on the difficulties of creating a new car company. Building any new car that meets modern customer expectations, regulatory requirements and is reliable and durable is an extremely daunting task. All of that needs to happen before you even think about actually making money on the whole deal, which few car companies seem to be able to do. The technical issues of integrating all the powertrain electronics, safety, body and entertainment systems is extremely costly and time consuming but must be done if you expect people to actually big bucks for an electrically-driven car. If you don't accomplish all of that, you may sell a few cars to rich early adopters and enthusiasts, but you won't have a sustainable business. One correction to the article: the author states that Tesla plans to build 1,000 cars this year, that number is closer to 600 and even that may prove to be a stretch.
In typical fashion, Zap has responded to the critical exposé that was published Wired recently with, you guessed it, more press releases. The releases, of course, do nothing at all to address any of the issues raised in the article about the company's business practices. Zap has heavily promoted several amazing new vehicles, none of which have been delivered even in prototype form. One of the press releases does point to an article in Popular Mechanics titled "5 Electric Cars Making History, Not Hype." The author of that story apparently did little research on the vehicles. The first two are of course among our "favorites" here at ABG, the Xebra and the G-Wiz. None of the five vehicles come anywhere close to meeting U.S. automotive safety standards and only the Xebra is available here. As a three-wheeler, the Xebra is classed as a motorcycle and is thus not subject to the rules that apply to cars. We've seen videos of the G-Wiz being crash tested as well. A version of the Elletrica is available in the U.S. produced by American Electric Vehicle as the Kurrent. That vehicle is a neighborhood electric vehicle limited to 25 mph and subject to far less stringent safety standards. Ironically, that vehicle may actually be the safest of the bunch.
The world desperately needs vehicles with alternative powertrains, such as battery electrics. The potential to make a killing in the business is huge, as is the potential to lose everything. The auto industry - as anyone who has ever gotten involved in it knows - is hugely capital intensive so investors are needed. However, people tend to be unwilling to put large quantities of cash unless they see a potential return. In any new business arena there are startups who fail without drawing much attention to themselves. Unfortunately there are also those that draw inordinate amounts of attention to themselves before they ever produce anything. Those in the latter category tend to poison the investment waters for those who may actually have something real to offer.
Such is the case with Zap! and their heavily-hyped electric vehicles. The Santa Rosa, CA company has been around for quite a number of years and has actually managed to sell a number of electrical products mostly related to mobile power products. However when it comes to electric transportation, their products are limited to the Chinese built three wheel Xebra "sedan" and "truck". Wired has now pubished a detailed article on the often sordid 16 year history of Zap! and its two primary leaders Gary Starr and Steve Schneider. Schneider and Starr have apparently "built" a business on alternating press releases about world-beating new electric cars and issuing new stock to continue paying the bills, including their salaries. Meanwhile enthusiastic prospective retailers of Zap products like Ehab Youssef and Joseph Gottlieb with little experience in the realities of the car business, have plunked down large amounts of cash for the right to sell vehicles that either come nowhere near meeting their rated specifications or never materialize at all. It's a sad tale but well worth the read. For those Zap representatives that often post in the comments here, please feel free to try and refute anything you feel may be incorrect in the article - but only if you have facts to back it up.
Zap's CEO Steve Schneider did a very interesting audio interview with CEONEWS.Tv recently where he talked about the Zap-X, the Zap-Coke deal and the future of the company. On Zap-X, Schneider says Chinese automaker Youngman owns 51 percent stake in the Detroit Electric joint venture, while Zap owns 49 percent in the company. Schneider explains Detroit Electric will sell higher speed electric vehicles while Zap continues to sell the lower speed vehicles. Schneider says the Youngman relationship is unique because, according to his understanding, there are only a handful of licenses given to Chinese companies to make cars inexpensively (Zap can sell buses for half the price, for example). On the release of the Zap-X, Schneider says it's a 36-month project but did not say when it started (it's been at least 14 months). Schneider did say the Alias is a 18-month project and they are six months into it. Remember that Zap has been talking about the Alias since June 2007, which was eight months ago.
On the recent deal with Coke (Coca-Cola is using thirty of Zap's compact trucks in Montevideo, Uruguay) Schneider says it was spawned from the UPS deal. Schneider explains the UPS deal came from one brave UPS rep that "risked his career" to use Zap trucks and a tractor trailers hub model. The hub model showed bottom line savings for the company and what do you think happened to that UPS rep? He was promoted to a much "larger capacity" position at the San Fran UPS branch! "Quite a few" companies (Schneider won't give out names) have contacted Zap, looking to repeat the model, since that brave UPS rep started the ball rolling.
Schneider also talked about a trip to Dubai and said the Middle East is more interested in electric cars than you might expect. Schneider was asked about the Daimler lawsuit and while he could did not say much, he did say Zap's lawyers tell him it should be settled in three months. Things are changing like the climate Schneider jokes and "the market is finally catching up (after 14 years) to what ZAP has been preaching." Schneider expects Zap to have 100 dealers by the end of this year, up from 56 at a recent meeting. AutoblogGreen is not a stock investing website but we have to admit we are really impressed by this interview and Zap's CEO Steve Schneider responses. He talks a good game, at least.
Paul Niedermeyer over at TTAC got the chance to drive a ZAP Xebra pickup and his review pretty much reads as you would expect. The car is poorly assembled, slow, short range and dangerous. He goes so far as to refer to it as a motorized wheelbarrow/hair-shirt - which, despite what you think of the car, is pretty funny. Was there anything that he did like about the Xebra? Nope.
We have had the opportunity to drive the Xebra, and we also found the machine to be a bit on the slow side. We also noted the small interior and poor build quality. We still maintain, though, that the vehicle is fine for what it is. If used as a vehicle to get to the grocery store, campus, library etc, it'll do fine. If you actually plan to drive the Xebra every day, or on high-speed or high traffic roads, you should look elsewhere.
Unhappy with your plugless Prius? Zap thinks it has an answer for you.
The king of green car press releases has issued another announcement, this time talking about the availability of a Toyota Prius and Highlander plug-in conversion kit. In collaboration with Hybrid Plus, Zap's kit will convert hybrid Priuses and Highlanders into what tests predict will be 120 MPGe (city) and 90 MPGe (highway) vehicles. Depending on the vehicle, the kits cost between $24,000 and $36,000, and Zap says turnaround time is about four weeks. The press release doesn't get into great details, but it sounds like you need to bring your Prius/Highlander to Boulder to have Hybrid Plus do the work. You might also be able to go to a local Zap dealer to have the work done (UPDATE: Zap says that Zap dealers will be able to do the conversions).
While electric car dealerships seen a little more business in the last few years, as a recent New York Times article points out, it's still hard to get by selling nothing but electric cars. Many EV dealers already sell other types of vehicles and, as Hybrids Plus CEO Carl Lawrence says, electric car companies and hybrid conversion companies collaborating is "natural."
Gallery: Zap, Hybrid Plus Plug-in Prius Conversion
Once upon a time Zap had a dream to import the Smart ForTwo to the U.S. market. Unfortunately for Zap, that plan didn't work out and Smart's parent Daimler ultimately did a deal with Roger Penske to be the U.S. distributor for Smart. Zap decided not to take this lying down and ultimately filed a lawsuit in 2005 against Daimler (then DaimlerChrysler) alleging the German company interfered with their business (need more background? click here). So far Zap has had no success in U.S. courts, with both a trial court and appeals court ruling they had no jurisdiction over Daimler in the case. Undaunted, Zap is now going to the California Supreme Court hoping to get them to reverse the previous rulings. Zap hopes for a ruling in about three months.
No, that's not a new photo of the upcoming Zap Alias. Instead, it's a photo to show what Zap and Youngman's partnership will bring back from the dead: Detroit Electric.
Zap and the Chinese company China Youngman Automotive Group announced today that Detroit Electric, the 100-year-old electric car brand, will be the name applied to the two company's joint venture, which they say will be "bringing new vehicle technologies to market by 2009." They mean the buses (announced recently) will be here in 2009, not necessarily the Zap Alias, although both will carry the Detroit Electric name. Where will Zap locate the revived Detroit Electric offices? In California, naturally.
Zap's partnership with Youngman Automotive Group is expanding. The two companies announced yesterday that Zap now has the rights to distribute the Chinese company's full line of buses in the North American bus market. In September 2007, Zap and Youngman announced they would partner in a joint venture that will bring new EVs, and hybrids to market. That agreement dealt with "electric and hybrid vehicles for the passenger car, truck and bus markets." The new announcement doesn't deal with those advanced technologies (Zap will promote Youngman buses that run on compressed natural gas/CNG), but does broaden Zap's offerings in the U.S. As Youngman Chairman Pang Qingnian said in a statement:
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."
While one of our favorite automotive curmudgeons, the Great Farago seems to have no reluctance to call out the likes of General Motors for greenwashing and Tesla for supposedly being vaporware (BTW for vaporware, it's a blast to drive!), he has so far remained strangely silent on the subject of Zap! Perhaps it is an odd sense of decency. He seems to only be willing to pick targets that have a hope of actually fighting back and perhaps making a case for themselves. Perhaps he doesn't see Zap! as worthy of expending his words on. Maybe he is right. Even so I will proceed share a few words on Zap! in this space. Zap has issued a request for quotes from engineering and technology partners to help actually make the Alias electric trike a reality. After originally planning to launch the Alias this year, the company is just now looking for partners to make it happen by mid-2009. While the Alias was originally conceived by Zap with Lotus, it seems odd that they are now looking for new engineering partners. The Alias, and perhaps the Zap-X, are expected to someday be manufactured by a joint-venture company formed between Zap and China Youngman Automotive Group. One interesting note in Zap's press release is that the Alias, if it ever moves beyond the rendering stage, would be sold under a new brand for the JV company rather than as a Zap. Come on Robert, where are you when we really need you? Or are you just waiting until March 18th to pick a new target?
Recently, I wrote a post that talked about Volvo's statement that they were working exclusively with PML (a company that makes in-wheel electric motors). I found this concerning because I thought PML was working with Zap on the Zap-X, a Lotus-designed, affordable, normal-looking electric car. I contacted Zap Communication's Alex Campbell, who checked with Zap's CEO Steve Schneider about Volvo's statements. Zap says they are in a relationship with PML but only on three-wheeled vehicles. As for four-wheeled cars, Zap tried but it looks like PML went with Volvo. Zap has moved on to a Chinese company that they say is not only cheaper than PML but can provide in-wheel electric motors sooner. So there is no confusion, here is exactly what Zap says:
We signed an exclusive agreement with PML on 3-wheelers and at the time were negotiating with them on other vehicles. We have since partnered up with a company in China with rights to their wheel hub motors. The significance is that the wheel hub motor that we have acquired is currently working in application and we believe will be commercially available within a shorter period of time than PML's. It is my understanding that the PML motor has still yet to work in any automotive application. And they are expensive so it would need to be manufactured in China to stay competitive.
In an interview, Ichiro Sugioka, project leader of Volvo's Recharge electric car concept, says PML FlightLink is "currently working exclusively for us." If that was not clear enough, Ichiro adds "all their efforts is going into our projects." The interviewer presses for more information, even mentioning PML's relationship with Lotus, but Ichiro is very clear. You can see this exchange three minutes into the video below the fold.
Why is this notable? Green car fans will recall the PML's in-wheel motors were going to be a key part of the Zap-X. I guess we should have noticed the relationship was probably over because Zap said it had some exclusive rights with PML and then PML started to work with Volvo. Companies don't write press release saying relationships have fallen apart. So, what does this mean for the release date for the Zap-X, the Lotus-designed, affordable, electric car?
Zap never made an exact release date for the Zap-X public, so it's hard to say the date has slipped. I would assume the internal date must have slipped a little bit. While Zap makes great products, they are probably one of the more out-sourced electric vehicle companies. I always imagined Zap, Miles or Tesla would be bought out sooner or later by a large automaker trying to catch up.
This little soap opera makes me think the top automakers just might bypass the middle man and work with the smaller technology companies instead.
