SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Schedule of Foreign Currency Exchange Balance

	December 31, 2012   December 31, 2011
Balance sheet items, except for share capital, additional	$ 1=RMB 6.3090     $1=RMB 6.3009
paid in capital and retained earnings, as of year end
Amounts included in the statements of operations	$ 1=RMB 6.3079   $1=RMB 6. 4618
and cash flows for the year

Summary of Changes in Level 1 Liabilities

The following table set forth a summary of changes in the fair value of Level 1 for the year ended December 31, 2011 (in thousands):

	December 31, 2011
Assets	Level 1		Level 2	Level 3	Fair Value Measurements
Marketable Securities (1)	$	1,830			$	1,830
Total assets	$	1,830			$	1,830

(1) Marketable securities consist of common stock of a related party. The fair value of marketable securities is based upon market value quoted by Korean stock exchange. The Marketable securities were sold for $1,128 at December 31, 2012.

Summary of Assets and Liabilities Measured at Fair Value

Fair value was estimated based on discounted cash flow. Assets measured at fair value on a nonrecurring basis for the years ended December 31, 2012 are summarized below (in thousands):

			December 31, 2012
Assets			Level 1	Level 2	Level 3		Fair Value Measurements
Long-lived assets- 3-door SUV mold	(2	)			$	2,560	$	2,560

(2) Included in "Property, plant and equipment, net" on the face of consolidated balance sheets. The original carrying value was $5.12 million. The Company recognized impairment charges of $2.56 million (included in "impairment loss of long-lived assets" on the face of consolidated statements of operations and comprehensive loss) and $0 for the years ended December 31, 2012 and 2011, respectively. These charges were related to the impairment in the 3-door SUV mold equipment used in the Jonway Auto segment (See Note 2 - Accounting for long-lived assets).

Schedule of Estimated Useful Lives of Property and Equipment

Estimated useful lives are as follows:

Machinery and equipment	5-10 years (Jonway 10 years)
Computer equipment and software	3-5 years
Office furniture and equipment	5 years
Vehicles	5 years
Leasehold improvements	10 years or life of lease,
	whichever is shorter
Building and improvements	20-30 years (Jonway 20 years)

Summary of Changes in the Product Warranty Accrual

ZAP	2012			2011
Balance as of  January 1,	$	321		$	152
Warranties expired		-			(14	)
Provision for warranties		2,119			188
Charges against warranties		(54	)		(5	)
Balance December 31,	$	2,386		$	321

Jonway provides a 2-year or 60,000 kilometer warranty for its SUV products. Jonway records the estimated cost of the product warranties at the time of sale using the estimated cost of product warranties based on historical results. The estimated cost of warranties has not been significant to date. Should actual failure rates and material usage differ from our estimates, revisions to the warranty obligation may be required.

Jonway	2012			2011
Balance as of  January 1, 2012	$	1,097		$	590
Provision for warranties		1,115			1,327
Charges against warranties		(1,248	)		(820	)
Balance December 31, 2012		964			1,097
Less: long term portion		(229	)		(592	)
Current portion	$	735		$	505