Youngman and ZAP joint venture still delayed

Shanghai, April 10 (Gasgoo.com) Sources recently said the joint venture of electric cars with its facilities based in Zhejiang province has not been launched yet since China's Youngman and American ZAP started their cooperation last September.

The company insiders noted that this project did not have any further development. The project of electric cars cooperated by Youngman and ZAP is now faced with abeyance. What ambitious Pang Qingnian (Youngman Pang), chief of executive of the company, wants more recently is how to let the industry outsiders approve of "competing fast", though seven months ago he still dreamed of being "electrically operated."

Youngman and ZAP located their joint venture in Hong Kong, for the purpose of avoiding troublesome examination procedure in mainland China. The registered capital of this joint venture amounts to $100 million. Youngman and ZAP each invest $50 million to form a 50-50 joint venture. Except cash investment, ZAP also added part of electric car technology, and Youngman delivered some production facilities as well.

What is confusing is that a PR manager from the Youngman Group stresses repeatedly that the joint venture is still in preparation at present. He noted that "ZAP is the leader of global electrical system and has sold altogether 100,000 sets of equipment." However, he said he was not clear why the joint venture is still in preparation after seven months of cooperation.