ZENN Motor Company Updates on Realignment of Its Business Operations
Posted Dec 07 2009 6:06am
ZENN Motor Company Inc. (“ZMC” or the “Company”) (TSX-V ZNN), a leading developer of zero emission transportation solutions and technologies, wishes to update its stakeholders regarding its ZENNergy™ drive solutions development and low-speed vehicle (LSV) operations.
As communicated in the Company’s September 24, 2009 press release, the primary focus for ZMC moving forward is the commercialization of its ZENNergy™ drive solutions, powered by EEStor Inc.’s Electrical Energy Storage Units (EESUs) and integrating third-party and proprietary technologies being developed by the Company. This focus, which has long been integral to the Company’s plans, reflects the dramatic shifts that have occurred within the automotive industry and the broad-based interest in electric vehicle (EV) solutions. Central to this interest in EVs are solutions that provide smaller, lighter, longer-lasting and less expensive energy storage. ZENNergy™ drive represents such a solution.
With its ZENNergy™ solutions, the Company intends to become a key supplier and partner with industry-leading Original Equipment Manufacturers (OEM) and Tier 1 companies in the new, used and specialty vehicle markets. Management believes that this approach represents both the quickest and broadest market penetration opportunity by leveraging the substantial manufacturing, distribution and service operations of the established OEMs and other Tier 1 companies.
The ZENN, the Company’s low-speed vehicle offering launched in 2006, established the Company as an innovator in the electric vehicle industry. As an early participant in the now-burgeoning EV space, the Company successfully developed its EV-related engineering expertise, created strong brand awareness and gained valuable practical experience in the design, production and support of electric vehicles. With the increased emphasis being placed on ZENNergy™ drive solutions, the Company affirmed today that the 2010 model will be the final ZENN LSV model produced and that it will cease production of the ZENN LSV by April 30th, 2010.
“The ZENN LSV remains a great mobility solution with a passionate following” states Ian Clifford, Chief Executive Officer of ZENN Motor Company. “We remain committed to ensuring that ZENN LSV customers are supported and that we meet our obligations as a manufacturer. The Company, together with its Retailers and service centers, plans to fully support the ZENN’s service requirements in the coming years as do ZMC’s parts suppliers.”
“With the valuable experience we’ve gained and the tangible progress EEStor has made over the past year, we are now confidently turning the page in the evolution of ZENN Motor Company from a manufacturer of LSVs into a Tier 1 supplier to automotive and specialty vehicle companies, including other LSV OEMs, all of whom are in great need of a solution such as that represented by ZENNergy™ drive,“ stated Clifford. “Recognizing the significant emphasis government, industry and consumers are placing on the electrification of transportation, we believe that our ZENNergy™ strategy is extremely well-positioned.”
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About ZENN Motor Company Inc.
ZENN Motor Company, Toronto, Canada, is dedicated to being a global leader in zero emission transportation solutions and technologies for markets around the world. Driven by quality, ingenuity and a philosophy of social responsibility, the ZMC team is redefining what is possible in both urban and business fleet transportation.
ZENNergy™ drive solutions, powered by EEStor’s electrical energy storage technology are expected to enable OEM and Tier 1 partners to deliver advanced electric transportation solutions to their customers. The Company has a Technology Agreement that provides certain exclusive and non-exclusive rights to purchase and deploy EEStor’s EESU technology as follows (all of which apply to 4-wheeled vehicles using electricity as energy for the vehicle’s propulsion system):
Exclusive rights for new passenger vehicles with a curb weight of up to 1,400 kilograms, net of battery weight (this does not include vehicles that are classified as Sport Utility Vehicles, Pickups, Trucks, Trams, Buses and certain high-performance sports cars with electric drive systems of 100 continuous kilowatts or higher);
Exclusive rights for neighbourhood electric vehicles (NEV) and golf carts operating at a maximum speed of thirty (30) miles per hour and;
Exclusive rights for utility vehicles having a maximum propulsion system of 15 continuous kilowatts or a curb weight of up to 1400 kilograms, net of battery weight (this does not include vehicles that are classified as Sport Utility Vehicles, Pickups, Trucks, Trams, Buses and certain high-performance sports cars with electric drive systems of 100 continuous kilowatts or higher);
Non-exclusive rights to purchase and deploy EEStor’s EESU in new passenger vehicles with a curb weight over 1,400 kilograms, net of battery weight (this does not include vehicles that are classified as Sport Utility Vehicles, Pickups, Trucks, Trams, and Buses).
The rights that ZMC holds expire when the last applicable EEStor patent expires.