Interview with Zap (Zero Air Pollution)

ZAP was founded in 1994 to develop cost-effective electric vehicle technologies. We started with electric bicycle kits, then full bikes, then scooters, mopeds, motorcycles, NEVs, ATVs and several other vehicles. ZAP went public in 1996 and the stock symbol is ZAAP. For the past five years we have been pursuing an automotive business plan. The Xebra sedan and truck are now available and are some of the only mass-production electric car-like vehicles on the market.

2: Some believe using electricity to power vehicles is simply trading a gas burner for electricity that is generated by mostly coal which is not reducing emissions. What feeling about this?

Numerous studies (CARB, Union of Concerned Scientists, EPRI) have done research on comparing electric cars to gas cars. They found that, including the emissions from power plants, electric vehicles are more than 90 percent less polluting. My understanding is this would include coal-fired plants.

3: The use of lithium batteries seem to be the next step for the electric vehicle industry, but is seems cost and size is a factor. It is my understanding that the Tesla electric car uses off the shelf lithium notebook computer batteries is that something ZAP had considered in their vehicles?

We are very focused on a manufacturing situation, which would be the only way to make a cost-effective product for the consumer market. I think it would be hard to find a battery company that wants to be in EVs that we haven't talked to. Recently we have formed a strategic partnership with a company called Advanced Battery Technologies that is developing what appears to be next generation lithium batteries for electric vehicles in China and preparing them for assembly line production. This should help get the cost down.

Advanced Battery Technologies says they are using nanotechnology to improve the performance and safety of lithium batteries. We plan to test these batteries when they are available. Lithium iron phosphate rings a bell. Perhaps I heard about this battery recently. Over 17 years I've been hearing all about next generation batteries, but never see them widely available.

I'm not familiar with this battery. I think assembly line manufacturing should be the goal of any battery production, this is what makes these products affordable vs prototypes. Also, those interested in EVs should start ordering more batteries, this is the real catch-22. No one will build them if there is no market. No one can buy them if they are not built. By putting more vehicles into the marketplace, this will create more demand. I think all of us should participate. I own a Xebra sedan and drive it almost every day. ZAP is planning to offer a lithium battery for the Xebra in the near future.

I think it already has. We all want to see the major automakers take this step and GM seems like they are on a path towards that goal. I think when major companies start using these, it will tip the balance.

Yes, I've been working in this field for 17 years. It is mostly corresponding to the price of gas. Since the price is about double in Europe, there is probably more interest there.

I think there is too much emphasis on powerful batteries, when electric vehicles can serve a multitude of uses with today's technology. At the same time, electric motor efficiencies is getting better, which can overcome range limitations as well.

We are still discussing timetables for these projects. With our new relationship with Youngman Automotive Group, one of the largest vehicle manufacturers in China, there may be some amazing possibilities, but we are still in talks and planning how to best approach the market as we see it developing in the next few years. The ZAP-X seems to be something that could be marketable to the mainstream, although the Alias would be a simpler design that would be faster to market.

We are looking for a commitment to purchase a wholesale volume of vehicles over an annual period in exchange for protecting a territory. We would like to have dealers in all 50 states to start. Anyone interested should engage our dealer development staff at 707-525-8658 for details. Since the dealer opportunity is so new, we are finding that we need to be flexible to meet their various needs. The Xebra is a unique vehicle that fills a certain niche, but it is also the only cost-effective practical vehicle in production today for the US market. So, our first group of dealers are more trend-setters and pioneers. I would recommend to anyone thinking about becoming a dealer to first own an electric vehicle. It's a business opportunity, but you have to be an advocate for the technology or you will never be successful.

11: With a number of electric vehicles hitting the market in the next few years do you think regulations should be put in place to standardize the charging connection electric vehicles use?

I don't think we should focus on this now. We should focus on getting more vehicles on the road. The existing infrastructure can already serve a vast untapped market for EVs. As more vehicles are being used, it will create a demand for better charge technologies. That's like putting in several hundred charging stations in public areas for the EV1, that never got used at taxpayers expense.

This was a strategic investment and a long-term relationship that we are formalizing with Al Yousuf Group. Other than the recent meeting in China with Youngman, at this point this has not been an issue.

The Middle East is very interested in electric vehicles and Al Yousuf is a major distributor in the region. Actually we are developing other relationships like this in Europe, South America and Asia.

We have been getting a lot of interest. With simply a reservation form on our website, we have already received a number of reservations. This type of interest is very important in our decision making. We are not actively marketing the vehicles because we have others selling now. We are waiting until we have a more clear picture on what the development timetables will be.

Our goal with the Xebra was to bring something practical and affordable to market now as an alternative. We designed it as a motorcycle because motorcycles are not required to be crash tested. For what it is, the Xebra may be the safest motorcycle on the road. We did extensive safety testing and we limit the speed to 40 mph because it was designed for city-speed driving only. Many seem concerned over safety, but after they try it they see that it is a very safe and sane sort of vehicle, not something that would be prone to speeding or unsafe driving. The vehicles have bright colors, are agile, and have no problem keeping up with city-speed traffic. I drove mine to work this morning and after a year it is my routine and I could never imagine going back.

For what Tesla is doing, I think that is a fair price. As I mentioned before, any product will not be affordable unless it comes off an assembly line. We are already experiencing this with the Xebra ~$10,000 and hope the same for our joint venture with Youngman.

Interview with Zap (Zero Air Pollution) - 11/30/07