SANTA ROSA, Calif., Oct. 12, 2015 /PRNewswire/ -- ZAP (ZAAP: OTC) – ZAP and Jonway Auto, jointly with Dong Feng Motor Corporation (http://www.dfmc.com.cn/dfmczg/main_en.aspx), held a supplier conference on October 8th in Hangzhou, Zhejiang Province to announce volume orders for mass production of Jonway's EV minivan for 2016. ZAP Jonway's EV minivan, marketed by Dong Feng Motor Corporation under Dong Feng's label received favorable market response after initial delivery of a few hundred vehicles last month. Dong Feng Motor's deputy CEO urged Jonway Auto to prepare to increase manufacturing production to support up to 20,000 of Jonway's EV minivan in 2016. They estimate up to 100,000 orders of Jonway's EV minivan over the next three years due to strong market demand for EV delivery vehicles in metro cities. The supplier meeting was held as a joint partnership conference to give Jonway Auto's suppliers visibility and confirmation on future orders and the need to quickly ramp production of the parts needed to supply the increasing volume production of Jonway's EV minivan. Dong Feng Motor stated that they plan to order more than 20,000 of Jonway Auto's EV minivan orders for 2016. Current backlog of Jonway's EV minivan is over 10,000, of which approximately a third is expected to be delivered before the end of this year. The slow start in production earlier this year was due to working capital needs which are now partially satisfied by funding and loans from ZAP and Jonway's major shareholders. Additional funding would still be needed to support the large working capital to fully meet the delivery of EV orders for 2016.
ZAP's Jonway Auto is well positioned to be one of the largest producers of EV logistics vans in China. The EV minivan market targeting delivery companies in the metro cities is the largest EV market in China and currently with the greatest demand. This is driven by delivery companies whose gasoline vans are currently banned from entering the major cities' highway during rush hour, whereas EV minivans are not. Additionally, EV minivans are not subject to driving on odd and even driving days in cities like Beijing and enjoy waivers for vehicle license fees and consumer tax that are imposed on the gasoline vehicles.
With the strong back log of orders for ZAP Jonway's EV minivan, ZAP and Jonway Auto is looking for partners to address manufacturing production capacity for its new E-3D SUV, and working with financial institutions and investors to support the required working capital to deliver the orders in the backlog.
About ZAP and Jonway Auto
ZAP and Jonway Auto designs and manufactures quality, affordable new energy and electric vehicles (EVs). Jonway Automobile has ISO 9000 manufacturing facilities, certified for EV manufacturing, and engineering, sales and customer services facilities in China. Jonway has production capacity of up to 50,000 vehicles per year, over 1 million square feet of factory space, and over 65 acres of land and established sales distribution network in China. ZAP, an early pioneer of EVs, brings to both companies a broad range of EV product technologies. ZAP is headquartered in Santa Rosa, California and Jonway Auto is located in Zhejiang Province of the People's Republic of China. Additional information about ZAP Jonway is available at http://www.zapworld.com.
This press release contains certain forward-looking statements defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," "intend," "plan," and similar expressions that may tend to suggest a future event or outcome are not guarantees of performance, which cannot be predicted or anticipated. These forward-looking statements are based largely on expectations and are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Actual results could differ materially from these forward-looking statements.
Contact: Michael Ringstad
SOURCE ZAP and Jonway Auto