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.

[Source: Wired]

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.


[Source: CEONEWS.Tv]

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.

[Source: Alex Campbell from Zap]

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.

Related:

• Volvo could develop a robot that plugs in your car
• Frankfurt Preview: Volvo ReCharge - The Swedes go series hybrid
• Zap! does deal for wheel motors
• Video: 900 miles without a fill up

[Source: Google Video]

Recently, I wrote that the Zap-X could be "months" away from mass production. No one shared my enthusiasm because the estimate included an indeterminately long "testing" period. I contacted Zap and they said the "situation is evolving very quickly because Youngman is already a very large manufacturing company with plans to move into automobiles" unlike, say, Tesla. Zap says the "ZAP-X is on the agenda" but "timetable projections will not be confirmed until the JV (joint venture) business plans between ZAP and Youngman have been further developed."

What was I thinking? The ink on the Zap-Youngman contract is still wet. Zap just showed the car images for the first time this year. The safety testing required for American cars could easily push the release to late 2008, early 2009... in America! I found an interesting interview with the CEO of Zap, Steve Schneider, where he says Zap will develop "electric vehicles for sale in China, and the Middle East, and South America, and here in the United States." Youngman is in China so "it gives us (Zap) the China market, of course" said the CEO.

This opens up an interesting possibility: What if affordable, normal, electric cars are commonplace in China before the US? Four things could keep Zap-X from premiering on China's streets. First, could the Chinese afford the Zap-X? The Cleantech article says "with volume manufacturing, Schneider said ZAP's target is to not have any passenger vehicle over $30,000." Two, can Youngman make enough cars? Youngman expects a capacity of 200,000 vehicles in 2008 and 300,000 in 2009. Three, what about safety tests for China? I don't mean to insult the great nation of China but from what I see in the headlines and Congressional hearings; IMHO quality testing won't cause a big delay there. Four, what if Zap just does not want to release in China first? I asked them but have not received a response yet.

I could see why Zap might be concerned. I know if I saw affordable, good looking, four door sedans driving around the streets of China for under $30,000, for a whole year while it went through testing in America, I might start to look into the electric car grey market. This is all very hypothetical, but do you think seeing the Zap-X crowding the streets of China could be a Sputnik-like moment for China-US relations? Do you think America should be embarrassed if it loses the "electric-car race" to China or another country?

[Source: Cleantech]

The product of the Zap-Lotus agreement, the Zap-X, a normal looking, electric, four door sedan, just might be "months" away from mass production. China.org.cn is reporting China's Youngman Automotive Group, the guys making the car for Zap, said they could deliver a test car to Zap by the end of this year and after testing by Zap, the sedan could go into mass production as little as two months later. Here is the quote:

"The sample vehicles will be finished at the end of this year or next January. Two or three months after testing, the electric-powered sedan under the Lotus brand will be the first to go into mass production."

Zap has not announced a release date (surprise!) but if things go as Youngman hopes, the Zap-APX could have a release date of Summer 2008; the earliest release date that we know of for any of the new, normal electric cars like the Miles Javlon. While a summer release date would give Zap the honor of being first to market with a normal electric car, the price and range are the more complicated issues. They have not given a price and the range is said to be 350 miles.

Whatever the release, price and range, the Zap-X looks like it will be an amazing car, should it ever be more than vaporware: in-wheel electric motors by PML FlightLink, a top speed of 155 mph, and 0 to 60 MPH in 4.8 seconds. While, I don't think anyone expects all of that to remain true, for an affordable car anyway, I am glad to hear that things are at least currently on track on Youngman's end for the Zap-APX. AutoblogGreen remains skeptical, as you know.



[Source: China.org.cn and tipster Domenick]

Zap is starting to trickle out some more information on their latest announced but as yet invisible project, the Alias. They first announced their intention to develop this new three-wheeler a couple of months ago and indicated that they would provide more details at their July shareholder meeting. Alas the only information that came out at that time was the name.

The Treehugger team now has some new renderings of the lithium polymer battery two-seater. The batteries will evidently be sourced from China's Advanced Battery Technologies and use nanoparticles like A123 and Altairnano. Lotus Engineering will be doing the development work and the plan is to build both the Alias and Zap-X in China, assuming either one ever sees the light of day.

[Source: TreeHugger.com]

Update: AutoblogGreen is not endorsing any of the companies in the article linked to below. The point of this post is to point out that there are many companies who are hoping to get a piece of the green automotive pie.

Update - Editor's Note: We should make clear from the top of the post that Investor Ideas is paid by Zap! to promote Zap! products and so they are not an independent third party. AutoblogGreen does not take money for posts, and we never have and never will, and we should have pointed out that Investor Ideas does in the original text of this post. Investor Ideas does disclose the financial relationship with Zap! in tiny print at the bottom of their page, but we want to state it clearly up front. Thanks to Darryl and Rick for their comments pointing this out.

If you frequent our site, nothing in this article will come as groundbreaking to you. If not, you really should read our content! Then, if you want, check out the article. What you will find is that there are currently some pretty good choices for you next vehicle if you'd like to go green. You will also find that there are many more choices poised to grab some market share. Competing technologies such as plug-in electric vehicles, plug-in hybrid vehicles and even hydrogen vehicles will be attempting to make inroads on American roads soon enough. What that means is that this is an exciting time to be involved, as we are kinda at a "Genesis" in the technology. Where will things go from here? Time will tell, and consumers will vote with their pocketbooks.

If ZAP! can actually bring their exciting products to market, I'd expect them to become a major player. As it stands now, though, their three-wheeled electric vehicles are not going to be replacing too many internal combustion powered cars anytime soon. If their electric Lotus APX or their Obvio vehicles actually show up, watch out!

GM intends to produce the Volt, read about that here. If you don't need a new car before, say, 2010... you may be in luck. We here at AutoblogGreen soundly believe that the Volt could be a market-changing vehicle for GM in the same way that the Prius was for Toyota. Don't forget Honda, the most fuel efficient brand in America, either. Like I said, exciting times indeed!

[Source: Investor Ideas]

ZAP CEO Steve Schneider just returned from a trip to Europe where, among other things, he got together with representatives from Group Lotus and Lotus Engineering. ZAP has announced plans to build a battery powered crossover based on the Lotus APX design study. Unlike Tesla who kept details of their Roadster fairly quiet until they actually had at least real prototypes, ZAP is racing ahead issuing press releases with some pretty amazing specifications and sketches but little else tangible.

Given the engineering prowess at Lotus, if anyone can come close to living up to ZAPs claims, they are the ones. Lotus has made great advancements in developing strong lightweight aluminum structures through their work on the Elise. Light weight is important for electric vehicles to compensate for the extra weight of batteries. Apparently, Schneider was unaware of what Lotus was capable of prior to visit, which makes one wonder what else he is actually aware of.

[Source: ZAP]

Will Tesla soon have competition in the electric supercar market from Zap? They just might, if you believe the almost unbelievable statistics Zap! is claiming in their press release (a really big if). Information at this point leads us to believe that Zap!, like fellow electric carmaker Phoenix, will be using batteries purchased from Altairnano. Claims from Zap! indicate that their vehicle with these batteries will be able to travel 350 miles between charges, after a charge time of only 10 minutes. Phoenix claims a similarly short charge time for their vehicles with the Altairnano batteries.

Other interesting "green features" of the vehicle include solar charging from the vehicles glass. We have pondered the possibility of this before, and now it seems it may become a reality. Don't expect the solar charging to add a significant amount of drive time however, perhaps the vehicles accessories won't drain the batteries so fast. Don't expect a great deal of luggage space, however, the vehicle does have 4 doors, making it a more practical choice than some other potential electric vehicles. The dimensions of the vehicle indicate it will be slightly larger than the Toyota Prius. Here is one statistic that the Prius can't touch... how about up to 644 horsepower and a top speed of 155 mph? This performance would come with all-wheel-drive courtesy of a motor in each wheel.

Click for more about the vehicle, and another concept drawing.



[Source: ZAP via Insidegreentech]

Last Friday there was a presentation of plug-in electric vehicles at the White House and Phoenix MotorCars was there with their AltairNano battery powered SUT. Following the presentation, Dallas Kachan of InsideGreenTech had a chance to talk to AltairNano CEO Alan Gotcher. Gotcher repeated all the usual claims about his company's batteries which sound wonderful. Hopefully in the near future, someone will be able to independently evaluate the claims and either verify that they are accurate, or else debunk them, preferably the former.

Interestingly, the subject of Zap! came up, particularly in light of their recent announcement of plans to build the Zap-X. Gotcher confirmed that AltairNano has been in discussions with Zap! for well over a year but have not yet reached a mutually agreeable business deal. Zap! has ordered some batteries and AltairNano is delivering them. At this point however, nothing is a done deal. If the Zap-X is going to be anything more than vapor - and come anywhere close to the performance claims in the announcement - AltairNano or some other battery maker is going to have to come through, and they'll have to cut a deal.

[Source: InsideGreenTech, thanks to Dallas for the tip]