Zap (Zero Air Pollution), an American electric vehicle maker known for their fleet vehicles, small trucks, cars and scooters, and Zhejiang Jonway Automobile Co. Ltd., announced a commercial agreement for the development and production of electric SUV's, cars and other vehicles for domestic and worldwide sales.

Jonway currently manufactures several thousand 3 and 5-door,1.6L to 2.4L, A380 SUV's per month with a capacity to produce 50,000 vehicles per year.  Zap and Jonway collaborated to produce an electric version of the 5-door A380, using Zap's latest AC propulsion and lithium ion battery system technologies to create a high performance midrange vehicle targeting the fleet vehicle market in China.

Zap brings their EV expertise, R&D and worldwide sales channels, while Jonway provides manufacturing capability, a conventional vehicle platform and their own domestic sales channels, to jointly market this all electric SUV in China and around the world.  ZAP will license the technology developed at their Santa Rosa, CA research center to Jonway for this endeavor.

Through this agreement, Zap is hoping to take advantage of China's $8,800 subsidy for vehicles produced and sold in China.  Jonway, of course, leverages Zap's many years of proven EV technology from fleet sales to UPS and others.

[Source: Press Release]