Test drive: Zap's new electric car

Test drive: Zap's new electric car

Mark LaPedus
EE Times
12/08/2008 6:43 PM

SAN JOSE, Calif. -- During a casual drive in San Jose, Calif. on Saturday, my wife and I stumbled upon the first electric car dealership in Silicon Valley.

This weekend, the dealership, Ethical Approach--Electric Vehicle Center, held its grand opening celebration. On display were the company's first products: an assortment of electric plug-in vehicles from Zap Inc., a fledging, publicly-held startup based in Santa Rosa, Calif.

The dealership showcased various models of Zap's new three-wheel electric car, a four-wheel small truck, an electric scooter and even an electric bicycle. Daniel Reuter, president and chief executive of Ethical Approach (San Jose), offered me the opportunity to take a test drive in the new and lime green Xebra Sedan, which claims to be the world's only ''city-class'' electric car in production.

The Xebra is a small, three-wheel car that runs on a lead-acid battery and boasts speeds up to 40 miles per hour. The car has a range of 25 miles before it needs a recharge. It has an onboard 110-volt AC charger.

The car itself has been redesigned. The 2009 version, which I test drove, is a 5-door hatchback with folding rear seats, more than doubling the size of the rear cargo area with 34 cubic feet of space. The steel body is more durable than the original 2006 fiberglass model.

The vehicle, which seats up to 4 people, is 290- x 142- x 154-cm and weighs about 2,805 pounds. The sticker price is $11,700, but Ethical Approach was offering a $1,500 discount on the vehicle.

Zap manufactures its electric vehicles primarily in the Shandong Province of China. Zap handles the final assembly in Santa Rosa as a means to ''control the quality,'' according to a spokesman for the company.

At present, Reuter said Zap has already sold some 1,000 Xebra vehicles. Zap and the dealership are not only going after consumers, but the entities are also forging fleet-car deals with major corporations. Zap has delivered vehicles to Coca-Cola and Domino's Pizza. The Xebra is ideal for corporate campuses, said Reuter, who took leave as a mechanical engineering student at San Jose State University to open the dealership.

The test drive

Meanwhile, at first glance, the Xebra is a small, cone-shaped product, making it somewhat unnerving to take it on San Jose's busiest streets. Inside the car, the Xebra is quite rudimentary. The dashboard consists of a basic speedometer, odometer and radio. It also consists of an ''ammeter,'' which measures how many amps are consumed. This allows the driver to maneuver the car more efficiently.

The interior is also simple. Don't expect fancy leather material or bucket seats. The driver's seat was roomier than expected, but my wife seemed to struggle to get comfortable sitting in the back seat.

I soon learned that the Xebra operates much like a souped-up golf cart. There is a parking brake on the driver's side. Once the parking brake is lifted, the car is ready to maneuver. The pedals operate much like a golf cart. There is one to make the car move and another to stop it.

Despite playing golf -- and operating many golf carts in my day -- I found the initial efforts to operate the pedals were somewhat unsettling. Braking was surprisingly responsive. Before I headed out on my test drive on Stevens Creek Blvd. in San Jose, I hit the brakes and stopped on a dime.

Once I drove down Stevens Creek Blvd., I became used to the pedals and had no trouble driving the vehicle. The ride itself was not quite like my 2008 Honda Accord. It was a little noisy and bumpy, but the handling and steering mechanism were surprisingly better than I expected. Clearly, it was more stable than a golf cart.

Overall, I had a good and fun experience with the car, but the question is whether or not I would drive one on a daily basis? The answer is yes. I would drive a Xebra around my immediate area, but I would be reluctant to go beyond a certain point. Over time, I would get used to it. And, yes, I feel very safe in the car.

Dubai funding, bail outs and new models

Still, Zap could fill a certain niche in a growing sector. For example, President-elect Obama vows to put 1 million plug-in hybrid cars on the road by 2015.

And Zap wants a piece of the action. To do so, the company has shored up its bottom line. In May, Eqbal Al Yousuf, president of Dubai's Al Yousuf Group, was named chairman of Zap. Chairman Emeritus and co-founder Gary Starr will continue his role with Zap and will remain on its board.

Last year, the Al Yousuf Group purchased $5 million worth of Zap's shares. In August, Al Yousuf Group, a Dubai-based conglomerate and investor, provided a $10 million financing arrangement to provide working capital to Zap.

Zap reported revenue of $3.1 million for the third quarter of 2008, compared to $2 million in the third quarter of 2007, an increase of 52 percent. It reported a net loss of $2.5 million for the third quarter of 2008, a $1.2 million improvement to the loss of $3.7 million reported in the third quarter of 2007.

In Q3, Zap shipped 240 Xebra vehicles, as compared to 80 in the September quarter of 2007. The company shipped 130 vehicles in the second quarter ended June 30, 2008, compared to 80 vehicles in the June quarter of 2007.

What's next for Zap? Last month, it rolled out the four-wheel ZAP Truck XL. The ZAP Truck XL is able to drive up to 30 miles on a charge. From a standard 110-volt outlet, the XL recharges in about six hours and an 80 percent charge in just four hours. Zap offers optional upgrades to 220 volt charging for faster charging. MSRP on the truck is $14,950.

Zap is also developing an exotic, three-wheel sports car, dubbed the Alias. The car is projected to accelerate from zero to 60 miles per hour in 7.8 seconds. It has a range of 100-plus miles before it needs a recharge.

While the company is expanding its lines, Zap has seen a ''lull'' in sales due to a fall in gas prices. The ''lull'' is expected to be temporary, according to Reuter. Reuter--and Zap--also took a hard stance on the proposed bail-out for U.S. car makers.

''Often financial stimulus goes from the government to large corporations, and smaller innovative companies like Zap are omitted,'' according to Zap in a statement. ''Over the past few decades, billions of dollars of taxpayer money have gone to the Big 3 to improve fuel-economy and support the use of advanced technologies like electric cars and almost nothing has been delivered while the industry has fought regulation at every turn. At the same time, the smaller companies that deliver receive nothing,'' according to Zap.

''While plug-in hybrids are not in mass production today, Zap is selling mass-produced, 100 percent plug-in, battery-electric vehicles with over 100,000 EVs delivered since 1994. Zap has been experiencing record demand in 2008 with high gas prices and the fact that there are relatively few electric vehicles on the market. Zap has expanded its workforce by 30 percent since January to help fill orders and expand its distribution. Zap has done all this without federal support,'' according to the company.