Zap Acquires 51% Stake In China’s Jonway Auto

EV manufacturer Zap recently announced an agreement to purchase a 51% stake in Zhejiang Jonway Automobile Co. Ltd for $29 million.  The deal gives Zap an entry into the fast growing electric vehicle market in China and access to high volume production capacity.  According to Zap,

The ZAP Jonway merger accelerates cost-effective manufacturing of ZAP’s electric vehicles and gives ZAP access to the Chinese market through Jonway’s distribution channels of more than 80 factory direct dealerships that feed into hundreds of factory authorized dealers. Jonway’s volume manufacturing capacity gives ZAP a strong manufacturing base with the means of commercializing its innovative EV technologies.

Zap will be able to purchase the remaining 49% of the Jonway by march, 2011 at  the same evaluation.  Jonway had revenues of $40 million in 2009 and $20 million in the first quarter of 2010 alone.

Jonway Automobile, with approximately 800 employees, is currently manufacturing approximately 1,000 vehicles per month and has a capacity to produce up to 30,000 vehicles per year at its modern, 3.6 million square foot plant in Sanmen on approximately 141 acres of land. Focused on quality, Jonway is ISO 9000 and China Compulsory Certification (CCC) certified. Jonway distributes through a nationwide network of auto dealerships in China and distribution partners in Europe and Egypt. Jonway’s 3-door SUV has been CE approved in Italy by its European partner for the European market.

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