Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

NOTE 18 – SUBSEQUENT EVENTS

Dealership Financing

At the end of July 2012, we received US$12.7 million in dealership financing from China Everbright Bank to finance the purchase of vehicles for sale at qualified dealerships in China.

The dealership financing obtained by Jonway Auto is for authorized, eligible and approved Jonway Auto dealers in China. It is a new model of financing support that Jonway Auto was able to negotiate with China Everbright Bank after more than 1 year of due diligence. The fund is available for qualified dealers to finance "flooring" of the vehicles purchased to be sold in the dealership. The dealership has to be qualified by China Everbright Bank and the approved amount of loan for that dealership is drawn down based on the value of the orders placed with Jonway Auto. The bank pays Jonway Auto for the orders placed and the dealer repays the bank when the vehicles are sold. The dealer is liable for repayment of the loan as the vehicles are sold over a six month period. Jonway Auto provides the guarantee behind this repayment. This is a revolving credit line that is drawn down and repaid as the vehicles are bought and sold by qualified dealers. The overall amount available could increase as the business of each dealership grows. 

Appointment of Co-Chief Executive Officer

On August 7, 2012 the Board of Directors (the "Board") of ZAP (the "Company") elected Charles Schillings as the Company's Co-Chief Executive Officer.  Mr. Schillings who is the currently the Chief Operating Officer of the Company will serve as Co-Chief Executive Officer with Alex Wang who has been the Company's Co-Chief Executive Officer since October of 2010.