ZAP buys most of China's Jonway; will make taxis
ZAP, a California-based maker of battery-powered vehicles, has announced plans to buy a controlling 51 percent share of Chinese automaker Zhejiang Jonway Automobile Co. to produce electric SUV taxis for the China market.
ZAP will pay $29 million (196 million yuan) in cash plus 31 million Zap shares valued at $14 million. ZAP says it will acquire the rest of Jonway at a later date. The boards of the two companies approved the acquisition on July 2, according to Zap.
According to Jonway's Web site, the company produces three- and five-door SUVs at its assembly plant in the coastal city of Taizhou, which has the capacity to produce up to 30,000 units a year.
The company claims to have a network of 500 dealerships plus a distribution network in Italy. The company began producing vehicles in 2003.
ZAP markets a variety of electric cars and trucks in the U.S. According to Bloomberg News Service, it has earned a profit only once in its 15-year history.
The company entered Chapter 11 bankruptcy proceedings on March 1, 2002, and emerged from court protection that same year.
