Zap counters hype machine story with yet more press releases
In typical fashion, Zap has responded to the critical exposé that was published Wired recently with, you guessed it, more press releases. The releases, of course, do nothing at all to address any of the issues raised in the article about the company's business practices. Zap has heavily promoted several amazing new vehicles, none of which have been delivered even in prototype form. One of the press releases does point to an article in Popular Mechanics titled "5 Electric Cars Making History, Not Hype." The author of that story apparently did little research on the vehicles. The first two are of course among our "favorites" here at ABG, the Xebra and the G-Wiz. None of the five vehicles come anywhere close to meeting U.S. automotive safety standards and only the Xebra is available here. As a three-wheeler, the Xebra is classed as a motorcycle and is thus not subject to the rules that apply to cars. We've seen videos of the G-Wiz being crash tested as well. A version of the Elletrica is available in the U.S. produced by American Electric Vehicle as the Kurrent. That vehicle is a neighborhood electric vehicle limited to 25 mph and subject to far less stringent safety standards. Ironically, that vehicle may actually be the safest of the bunch.
[Source: CNN Money]
Reader Comments (Page 1 of 1)
Lad 2:22PM (3/26/2008)
Last stock quote for ZAP(zaap) was 53 cents a share; maybe the hype is to maintain investor interest. Their only product is currently a very small three wheel motorcycle. It appears that smoke and mirrors alone won't sell a lot of Chinese imports to Americans.
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Nick 2:58PM (3/26/2008)
Zap needs to shut up and put out some vehicles or get out of the business. They've had a lot of great potential with good press and positive outlooks from many people, but now they have squandered it by producing nothing but hot air.
If they continue this vaporware charade, they will only hurt the EV industry. It may be better for them to give up and say 'We can't do it, but maybe somebody else can.'
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BlackbirdHighway 3:08PM (3/26/2008)
They can legally say anything they want as long as they include the magic phrase:
"This press release contains forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties..."
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Dave 3:17PM (3/26/2008)
Ha ha Blackbird; it's so true it hurts. ZAP has tarnished the whole industry, but we all know when it gets that ugly, they'll simply set up shop under another name.
If I were affiliated with ZAP, I'd quit and blow the whistle to save any credibility or integrity I had left. Has ANYONE that has been involved with ZAP been HAPPY with the service or product?
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Richard 3:22PM (3/26/2008)
I'd be interested to know as well if anybody was happy with the zebra or truck. I've read numerous articles about owners buying these vehicles and now I hear otherwise. Please speak up if you have had a good or bad experience.
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1985 Gripen 3:30PM (3/26/2008)
I think it's the responsibility of organizations like the National Automobile Dealers' Association to formally warn their members of ZAP! They allow ZAP! to come and speak at the convention and tout their latest vaporware without considering the history of scams. Hopefully this Wired article will become widespread. Someone should also hold Popular Mechanics accountable (their subscribers?) for not doing proper research into the company.
Lastly, to the uninitiated that press release from ZAP! seems to be CNN Money reporting. I'm not used to looking at press releases, but I thought at first that CNN Money wrote that article, not that they were merely posting a company-written press release.
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Bill 1:44PM (3/27/2008)
"Gary Starr and Steve Schneider have likely done more damage to the EV industry than Detroit and the Japanese combined," Scheder-Bieschin says.
Ouch!
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stephen 2:04PM (3/27/2008)
Alex Campbell is responsible for all these bogus press releases. I hear he is close to getting fired, so that at least is one step in the right direction...
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JP Hedin aka DrSmart 3:59PM (3/27/2008)
I like Zap's claim of selling over 100,000 "vehicles" Anyone who would ride in the Xebra has got to be crazy. I have never seen such a piece of automotive junk in my life. Steve Schneider is a total weasel and anyone who has anything to do with Zap isw bound to suffer a LOT of disappointment. Zap has always made false and misleading statements ie. 60 mpg smart car-sold dealer orders for over a hundred thousand smart cars etc. It's time for thius house of cards to fall down.
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1985 Gripen 4:40PM (3/27/2008)
For some reason the story of ZAP! reminds me a lot of the story behind Gizmondo. For an excellent expose (and you can draw the parallels yourself) check out this article, also from Wired magazine:
http://www.wired.com/wired/archive/14.10/gizmondo.html
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Giancarlo 12:41PM (4/08/2008)
And this from the LA Times April 5.
Lots of promises
Santa Rosa, Calif.-based Zap has repeatedly made promises that it hasn't been able to fulfill. The publicly held company sells electric scooters and low-speed, three-wheel cars, and CEO Steven Schneider says Zap plans to sell a highway legal three-wheeler starting next year.
Online stock trading message boards accuse Zap of operating as a "pump-and-dump" shop that attempts to raise the value of its stock temporarily by aligning itself with hot transportation trends. Schneider denied that, saying "moving the stock around doesn't help us."
The company has put out 26 news releases this year, and in December issued one headlined, "Zap not acquired or bombed by warplanes according to news reports." In the last several years, it has announced plans to sell a hydrogen fuel-cell vehicle, an ethanol vehicle and a 644-horsepower electric sports sedan. None has materialized.
Zap is in litigation over its 2005 attempt to sell Daimler's Smart Car in the U.S. without a license from the automaker. Zap purchased them from European dealerships and shipped them here. It also faces nearly a dozen unrelated suits, including fraud and breach of contract.
In the last four years, Zap's stock price has gyrated between 26 cents and almost $5. It hit its 2008 high of 89 cents in January, shortly after announcing that it had created an "electric car made for iPod" -- one of its low-speed models with an input jack for the digital music player. The shares are now at 52 cents.
"We put out a lot of news because it's a vicious market and we need to remain in the news," Schneider said. "Shareholders call screaming, 'We want news, we want news,' and so we give it to them."
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Alex Campbell 5:12PM (4/16/2008)
Hey, guys...
I guess if it's on Auto Blog Green it must be true...
BTW, don't shoot the messenger, but ZAP tells me they have delivered 700 vehicles to date. Here's the ZAP press release for what it's worth...
http://www.zapworld.com/gas-prices-april-2008
...but don't believe me. Seeing is believing. Call and visit ZAP or one of our dealers (www.zapworld.com).
~ Alex Campbell, ZAP, 707-525-8658, acampbell@zapworld.com
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Ron 6:46PM (8/12/2008)
The unfortunate thing is that Zap has been promising vehicles for years without actually building vehicles. This tarnished the industry and will turn off many buyers because of the flim-flam they have perpetrated on believing investors.
This is not new, the same thing has happened in every industry to include the emerging airplane industry. Eventually there will be huge money invested and either the big three will take over or there will be new corporate giants to rule our transportation needs for the next 100 years. Joy...Joy!
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