ZAP CEO - Steven Schneider

Dear Friends:

I believe that the current state of the economy and the auto industry illustrates the need and importance of ZAP’s pioneering work more than any time in the past. My heart goes out to all who are affected by this economic crisis and I want to assure everyone that on behalf of all at ZAP, we are working harder than ever before to continue our important work. We believe ZAP’s business plan and current line of vehicles represents a solution for our economy as well as for the bottom-line business practices of fleets, small businesses and individuals. We look at this economic downturn as an opportunity. Allow me to explain:

1. ZAP’s vehicles are so economical that we continue to be in a position with our current line of vehicles to capitalize on the growing demand for electric transportation. There remains a heightened awareness of the benefits of electric transportation and ZAP remains one of the few companies delivering vehicles in quantity. For this I want to credit our dealers, who are the cornerstone in the future of the auto industry, as well as our manufacturing partners for sharing our vision and working to build affordable electric vehicles today.
2. New fleet vehicles – Please take a moment to see our new electric Shuttle and XL Truck. I’m continually impressed by the quality of vehicles we are now delivering in partnership with our suppliers. More and more fleets are starting to incorporate our vehicles into their daily operations and ZAP is benefiting from spearheading the fleet market for electric vehicles. With these new models, I believe we have the tools needed to revolutionize fleets around the world with affordable, practical electric transportation. ZAP is the only company today offering a diverse lineup of electric vehicles for fleets, small businesses and individuals.
3. ZAP Alias – Earlier this year you may have seen the debut of our most exciting project to date. People are lining up to get the first hand-crafted models of the Alias as we work to finalize our production schedule. Our goal is to have the first of these to be available in 2010 and we encourage everyone to spread the word about this innovative design that we believe has the potential to revolutionize the auto industry. The Alias is also participating in the Progressive Insurance Automotive X PRIZE, a testament to a ZAP’s commitment to producing a stunning yet affordable high performance electric vehicle. Perhaps the most exciting aspect of this project is that we have made a commitment to build the Alias in the USA. Stay tuned as we finalize production for the Alias. Reservations are now being accepted on our website or by calling our sales staff.
4. Stimulus Tax Credits – The Stimulus Law passed by Congress and President Obama is historic by any standard, but for the EV industry it represents a turning point. This is the first time that tax incentives have been offered by the Federal government to ALL electric vehicles, not just those from the major automakers. Best of all for ZAP, they literally apply to almost every vehicle we make, including the Zapino, the Xebra, our new fleet vehicles, as well as the upcoming Alias. There is a 10% tax credit up to $2,500 as well as a motorcycle sales tax deduction. Consult with your local ZAP dealer and your tax professional on how to take advantage of these tax credits immediately.

   At the same time, the leader of this new project, Gary Dodd, a veteran manufacturing executive with Toyota and other automotive companies, has agreed to the position as President of ZAP, which is an important boost to our corporate management and out strategic plans. With this support, we believe big things can happen if the DOE accepts the application and we can secure a US manufacturing location for ZAP, so stay tuned.

Looking ahead at 2010, I see a challenging time for the world, the auto industry, and ZAP. But we must remember why we ventured into this field. At ZAP, we have seen this change coming and are well positioned to satisfy the need for more electric transportation. As you are reading this, ask yourself how you can help move this industry forward faster. If you have an idea, write to me personally at sschneider@zapworld.com and we can work together as stewards of our future.


Sincerely,



ZAP CEO Steve Schneider