Comments on: ZAPZ Interview

By: Rich Balcer

Rich Balcer — Tue, 31 Jan 2006 04:01:57 +0000

The company will stay the course on the smart car and slowly build some sales. They have developed a new car which will be introduced in 2007. They recently got a new credit line and a warning to stay listed. They have made mention of a reverse stock split but with that type of credit line they will probably just support the 1.00 stock price. With that type of credit line they company can't be denied and can ramp up fast if it wants. Investor sentiment may be changing now and they are slowly introducing new product.

Editor: Glad to see it rebounded, but don't trust the management.

By: John P. Hedin

John P. Hedin — Wed, 09 Nov 2005 06:12:34 +0000

I still do not understand how Mercedes and now the "Obvio Corp." seem to be obsessed with building a rear engine car-the smart and the Obvio are not the Porsche Boxster. Driving a smart in a cross wind is like driving an old VW Microbus! Ford & Fiat are collaborating on a 120" long- tall- 4 seat mini with a 3 cyl gas or diesel motor equipped with an available cvt transmission which should be a worthy competitor for the smart-not to mention the myriad other cars in the class that are much less expensive and more practical, and get the same mileage. Mercedes still has a disaster on its hands with smart-they have already written off 1.5 Billion USD on the car- & reportedly lose $5,000 on each car. In the UK they now have special Zero % financing, One year of free insurance or buy a cabriolet for $ 1,000 more than a coupe. I was at the smart factory in June and was amazed by the number of cars on hand. October 2005 sales for smart are down 18.5% over last year. The brand is only up 3% year to date even with the new, Mitsubishi chassis based smart forFour and Mitsubishi has just revised their Dutch plant production where the forFour is built downward by 10,000 to 120,000 total. It will be interesting to see how this story plays out. I'll bet that Mercedes could have put that 1.5 billion to better use in it's own product line rather than spend it on smart . Sort of like throwing paper money on a raging fire.

Editor: John, while this is all very interesting and informative, it really doesn't apply to the purpose of this forum. The BLOG is here to simply discuss the potential of ZP. In my view, discussing the potential of ZP is a waste of everyone's time and energy. The company had its window of opportunity, and it slammed shut. As a stock, as far as I am concerned, it's over. The whole thing was probably a bit of a scam on investors. My suspicions are that they knew they couldn't get the cars, yet they went and publicized the order flow ad nauseum. There stock went up, they raised money and probably dumped like crazy. I haven't looked at the tables, so I can't say for sure.

Your comments are appreciated, but ZP is over with. If circumstances change as far as that particular company is concerned, I will look at it again.

By: John P. Hedin

John P. Hedin — Thu, 03 Nov 2005 03:21:59 +0000

I understand that ZAP is suing everyone in sight-including the millionaire entrepeuner Thomas Heidemann-(the Prof. Harold Hill of smart) and current (?) Zap board member, as well as Zap's Registered Importer- G&K Automotive (the company that actually developed the mysterious "smart technology" that Daimler Chrysler so badly wants. What a soap opera! Now, if they could only get the EPA to pass the 700 cc car- they might be able to sell a few before it is replaced by the new 1000 CC car coming in 2007. I bet ZAP is planning to morph the smart car into the new OBVIO-and then equip it with the new pioneering ROTOBLOC engine! what a story-the stock should soar to at least $10.00 a share.With the 500 Million $$ that they will get from winning the law suit their future is secure. The preceding story was fictional-just say "I believe in Santa Claus-the Tooth Fairy and Steve Schneider".

Editor: There not much more to say about this one. It's over.

By: Joseph Makley

Joseph Makley — Tue, 01 Nov 2005 19:03:13 +0000

ZP is making a move right now. Up almost 15% from .82 to .99 Here's the news just out that is fueling the upturn: ZAP Files Legal Action Against DaimlerChrysler and Affiliated Companies ZAP's Suit Relates to Converting and Marketing Daimler's ''Smart Car'' in the U.S. Transportation pioneer ZAP (ZP) announced today that the Company will be proceeding with legal action against DaimlerChrysler (DCX) and affiliated companies and individuals, serving a complaint that seeks in excess of $500 million in redress for a more than year-long campaign of misconduct perpetrated against ZAP by Daimler and Ulrich Walker, the then-CEO of its subsidiary Smart gmbh. This might get interesting.

Editor: But then again, it might not. Just another stunt to get the stock trading in my view, but perhaps something can come of it. If you want the stock to trade, the best way to do it is to deliver sales and earnings.

By: John P. Hedin

John P. Hedin — Mon, 10 Oct 2005 07:29:28 +0000

Wait until "OBVIO" finds out that the nice folks at Zap are used car salesman who really don't know anything about cars-- do you think Zap can consult with OBVIO on things like certification when they were only involved in marketing the "smart" car-and what a great job of marketing the 60 MPG $25,000 non US compliant 2005 smart car they have done! How did Dorothy feel when she found out that the Wizard of Oz was just a scared little man pulling strings. Now that Zap has closed under $1.00 again-what is the real value of a marketing company with no R&D, and whose only profits come from a used car lot! A word to the wise should be sufficient-

Editor: I can't help but agree with you at this point. My suspicions are that the whole Smart Car thing was a big promotion to get their stock trading up- they must have had an idea they would not be able to fill the orders, yet they still went on promoting the order flow they were receiving. This is a stock I would avoid and/or sell for a tax loss.

By: Frank Brown

Frank Brown — Wed, 21 Sep 2005 23:44:22 +0000

Here's more info. They will have protypes ready by the end of the year. ZAP Signs Exclusive Agreement for OBVIO!(TM) Urban Cars of Rio de Janeiro Wednesday September 21, 4:26 pm ET California Company Projects Brasilian Car Available for Export to the U.S. by 2007 SANTA ROSA, Calif.--(BUSINESS WIRE)--Sept. 21, 2005--Transportation pioneer ZAP (PCX:ZP - News) announced today that it has signed an agreement for the exclusive North American distribution of a new urban car from Brasil with OBVIO! Automotoveiculos S.P.E. Ltda., of Rio de Janeiro. ADVERTISEMENT ZAP and OBVIO! have agreed to collaborate in the design and manufacture of high efficiency, high performance urban cars. OBVIO! intends to manufacture two models for export to the USA. ZAP will work closely with OBVIO! to ensure these advanced technology vehicles are fully compliant with United States regulatory requirements and will serve as the exclusive representative and distributor for OBVIO! in North America. ZAP and OBVIO! expect to unveil the prototypes in the U.S. by the end of 2005. Initial plans are to roll out the vehicles in 2007. Under the terms of the agreement, ZAP is ordering 50,000 vehicles from OBVIO! during the three year period following initial delivery. Given the level of interest ZAP continues to receive from its dealer network coupled with the "greening" of the American market, the partners see growing market demand for fuel efficient cars. According to the Wall Street Journal, the potential market for small, fuel-efficient cars could be as high as one million vehicles per year. "Over two million cars a year are manufactured in Brasil," said ZAP Chairman Gary Starr. "We are pleased that OBVIO! has chosen ZAP to be the first U.S. distributor of cars designed and made in Rio de Janeiro. We believe the OBVIO! is part of a new generation of automobiles that address rising energy costs." ZAP and OBVIO! intend to deliver urban cars with a uniquely fresh design that achieve high levels of passenger safety, performance, fuel efficiency and sophistication. The two models -- an economy and a performance version -- would include a number of exciting advances in design, features and options. "ZAP and OBVIO! share a lot in common in bringing change to the global automotive industry," said ZAP CEO Steve Schneider. "Fuel prices are on the rise and whether they go back down or level off, I think consumers today clearly demand more environmentally friendly vehicles. Unlike the Smart Car, having the manufacturer direct relationship with OBVIO! simplifies the importation process and the consumer benefits." ZAP's business plan is to develop a distribution network that caters to buyers of fuel-efficient and advanced technology automobiles. ZAP is working to create an auto dealer package that will market automobiles from companies like OBVIO!. Schneider noted that ZAP plans to offer new advances in automotive technology, including high efficiency internal combustion and electrically driven vehicles. "OBVIO! has spent several months investigating the right partner for the U.S. market," said Ricardo Machado. "We concluded that ZAP was uniquely positioned to be able to successfully market our cars and we look forward to bringing these refreshing new automotive designs to North American consumers. ZAP recently secured a $425 million credit facility and their experience in delivering alternative vehicles to the marketplace has shown that ZAP is capable of selling and servicing the dealer and customer that is motivated to purchase advanced transportation vehicles. We believe that with the backing and support of the manufacturer, ZAP will be very successful in this history making venture." About OBVIO! OBVIO! Automotoveiculos S.P.E. Ltda. is a new developer and manufacturer of automobiles in Rio de Janeiro, Brasil. OBVIO! has assembled a network of suppliers to incorporate the latest advances in automotive engineering into a new generation of automobile that meets the challenges of today's urban driving environment and is in the process of setting up its manufacturing facility in Xerem at Duque de Caxias city, Rio de Janeiro. Under the direction of OBVIO!'s chief design partner, Anisio Campos, the premier car designer in Brasil and a former racing driver, OBVIO! cars will incorporate many state-of-the-art technologies in its materials and features for an urban car that is fun to drive, but meets consumer's growing preference for efficiency. For more information, visit http://www.obvio.ind.br.

Editor: Maybe they will be able to get this one through the DOT and get orders for the car. Then you will have something. This press release could be construed as an admission that they are out of the Smart Car business.

By: Michaele Liu

Michaele Liu — Sun, 18 Sep 2005 16:13:47 +0000

ZP has lined up over 400M credit recently, Any comment from you? Does it mean ZP is close to offer Smart Car very soon in large amount, Is there any interview plan with Steven in near future?

Editor: There is only one event that could get me to publish on ZAP again- that would be an announcement specifying where they are going to get the cars they have orders for. I believe the company made some major blunders in the process of trying to obtain cars, and the negative backlash is too hard to overcome. I read the 8k on the credit facility, and it doesn't specify what it is for. It could be sales contracts for electric cars- I don't know. There has been no public disclosure concerning if or where they are going to get cars, and until there is I don't believe this stock has any upside.

By: John Fordam

John Fordam — Sun, 11 Sep 2005 04:58:20 +0000

Is there any hope left for zp ( new stock symbol) With gas prices so high, I would have thought it would spark new interest in there electric bikes.

Editor: There is plenty of hope for them to be a mediocre electric vehicle distributor. As far as being in the Smart Car business, it doesn't appear as if it is going to happen on any sort of mass scale. Not enough to make this stock a worthwhile investment.

By: John P. Hedin

John P. Hedin — Thu, 09 Jun 2005 04:23:22 +0000

smart math 101 4 years ago smart city coupe's were selling in Europe pre tax at from the equivalent of $7,000 base to $11,500 for a diesel Cabriolet plus a 1,000 Euro rebate. Add $3,500 for conversion costs and $750 shipping. Of course the Euro/Dollar ratio went crazy, but Mercedes is selling the base diesel (60 + MPG) at $15,500 USD. Zap is quoting $25,000 to $29,000 for prior model year cars (2002) The car just isn't worth more than $17,000 MAX

Editor: I haven't confirmed these numbers, but I will post them for everyone to see.

By: John P. Hedin

John P. Hedin — Thu, 09 Jun 2005 04:14:10 +0000

These are not REAL orders with customers waiting for a car-they are merely open ended commitments on the dealers part to buy a certain number of cars over a period of time without buyers or customer deposits in hand. Steve says they now have 2 BILLION in dealer commitments-that would be 162,000 cars-or 1.5 years total production. I understand that dealer commitments are for 100-150 cars-so how many dealers has ZAP gotten franchise from-I can't believe that 1,000 dealers could be so loose with money-Mini has 82 dealers in the US.

Editor: The numbers do seem overwhelming. I guess if you think in terms of percentages, if a small percentage of the orders they have actually fill, it has a huge impact on the company. To me, it's all about simply getting the cars to sell. The market has sure turned around on this one.