SUV Sales

http://biz.yahoo.com/bw/050405/55988.html?.v=1

ZAP files SEC Form 10-K Annual Report
Tuesday April 5, 4:01 pm ET
Filing Includes Company's Latest Tally of Purchase Orders for American Version of Smart Car at New High of $431 Million

SANTA ROSA, Calif.--(BUSINESS WIRE)--April 5, 2005--ZAP (OTCBB:ZAPZ - News), pioneering the next generation of advanced transportation and energy technologies, announced today that purchase orders from U.S. auto dealers for its SMARTCAR micro-coupe has reached $431 million, reflecting a broad base of consumer demand for a vehicle that fulfills modern transportation needs while providing high levels of fuel efficiency.

Dealer orders for the Smartcar have climbed steadily in recent months as ZAP has successfully solved the technological conversion issues required to prepare the Mercedes-built vehicle Americanized by ZAP for the U.S. marketplace. On March 22, ZAP announced reaching $200 million in dealer orders. ZAP and its partners have developed a number of proprietary software and other technical solutions to enable the Smartcar to meet U.S. safety and emissions standards, and also hold licensing rights to conduct the Smartcar Americanization from non-affiliated Smart-Automobile LLC.

"The phenomenal response has made it clear that the Smart Car has arrived in the U.S. at precisely the moment that American consumer demand for a new class of high-efficiency motor vehicles is exploding," said Steve Schneider, CEO of ZAP. "Oil and gas prices have been climbing steadily and show no signs of abating, with one prominent industry analyst predicting a coming oil price `super-spike' to $100 per barrel. This is causing increasing numbers of motorists to think in terms of fuel-efficient transportation of the sort that ZAP is a leader. Our market research and feedback has shown that U.S. consumers are attracted to the Smart Car by a number of factors, including its eye-catching design, styling, and size, as well as its groundbreaking gas mileage economies. We believe that the Smart Car, shown to be one of the world's most fuel-efficient gas vehicles, is one of the leading contenders in the next generation of road transportation."

The Form 10-KSB report for fiscal year end December 31, 2004 reflected the Company's business strategy to create a significant corporate technology and marketing entity capable of designing and delivering a broad line of transportation and advanced energy products. Topline revenues were $4.77 million, an 18.1% drop from the previous year's $5.83 million. Net losses were $ $29.4 million, compared with $5.5 million in 2003. Net loss per share was a loss of $1.67, compared with a net loss per share of $0.49 the previous year. A significant portion of the net loss for the year is comprised of non-cash transactions such as stock based compensation for consulting, services and employee arrangements, settlement of a stock agreement, and revaluation of certain ZAP warrants. Total Assets have also increased from $7.2 million in 2003 to $29.8 million at the end of 2004.

"The Company invested heavily in 2004 to create the current opportunities we're now witnessing in the automobile market as demand grows for the Smart Car and other ZAP advanced products," said Mr. Schneider. "Our success in this phase of our business plan has been demonstrated by the growth of purchase orders for the Smart Car and of our marketing strategy to build an alternative energy and high-efficiency automotive dealer network. This strategy has already generated $431 million in orders from U.S. dealers as we prepare to deliver our energy-efficient vehicles to the American marketplace."

Delivery of the Smart Cars represented by the current purchase orders is conditional upon ZAP's execution of strategic relationships with major automotive manufacturing partners that will enable it to support the full sales pipeline. To build sufficient capacity to supply the full U.S. demand, the Company has been in discussions with a number of major automotive industry leaders in Europe and Asia that have direct experience in the manufacture and sales of high-efficiency vehicles.

"The Company has not agreed to accept all orders received at this time, and have not determined a delivery schedule," said Mr. Schneider. "The Company will need the support of a major manufacturer and the full approval of all necessary governmental agencies for Smart Car models ordered to be able to deliver cars in this volume. We are actively seeking this support. The success of our marketing efforts so far in the U.S. has generated significant interest from these potential manufacturing partners. Upon finalization of these strategic relationships, we will determine our delivery schedule. Fortunately, interest in Smart Car Americanized by ZAP is so strong that a number of dealers have indicated that they are prepared to purchase a significant number of vehicles with cash up front, which will assist the Company's efforts to bring the product to the market. There is also currently a significant supply of unsold new Smart Cars in Europe that could be directed into the ZAP pipeline for Americanization and sale here in the United States. Currently, no other companies besides ZAP have the know-how or proprietary solutions to convert Smart Cars for sale in the United States."
 
In 2003 I purchased new Toyota RAV4 4x4, fore cylinders .Is should be economy SUV, but soon I find out that for small engine and lock of comfort it burns a lot of gasoline. On highway 20Mpg and in town 18Mgh, that what my friends with 6 cylinders engines are getting. I went to dealer twice and they can’t find anything wrong with the car and tailed me it’s normal. Yahhh…
 
It is always astounding to me the number of people who will spend $20,000 to save $2000.

Love the prius. If the technology had been proven for 5 years, and the battery issue can be proven to not cost $4000 to replace, its a winner for someone who is buying a first car.

Makes much more economic sense to keep that old car or SUV, depreciate it into the ground, eat the $1000 or so annual costs in extra gas, and wait for improved technology in either a hybrid or fuel cell.

Think oil prices will have a superspike? Fine. Buy canroys, oil sands, oil multinationals, and platinum/palladium producers. Use a retracement in real estate values to buy near central cities or close high end suburbs. And let your neighbors snicker for you driving a 7 year old car.
 
Quote from drsteph:

And let your neighbors snicker for you driving a 7 year old car.
More...

True. I have seen so many people investing in so much real estate that were buying at the very bottom and driving old but really useful mech condx cars.

My dad knew a bank manager way back in the day when hippies were everywhere in So. Calif. The guy told us that if it was not for the hippies his bank would not have any money in it. They came in and deposited whole paychecks in a savings account while the rest of the people were buying everything on credit. When the bargains come up, cash is king, no way around it.
 
drsteph has it right.


But all of the supposed elitetraders here are missing the value of a high efficiency car.

You don't do the computations for "is it worth the extra cost" now based on a fixed $2.25 a gallon (now it's $2.80 and counting in San Diego).

You have to integrate over all possible paths (like options) of prices in the future throughout the 10 year life or whatever of the vehicle.

And that, in any rational computation, must include some periods of absolutely outrageous prices, because Peak Oil is real. (This will mean higher ensemble average but also much higher volatility---example from 19th century Peak Whale Oil).

Buying a high mileage car means that you are also buying some protection against fluctuations (e.g. $20 a gallon gasoline, not $2.50) and of course with option theory volatility protection costs money.

Another astounding graph I saw was the prices derived from the future markets of the long term (5year or more to delivery or so) crude oil prices.

For a very long time---maybe since 1982 or so---this was a flat line at about $20, with much less volatility than the spot.

Then in about 2001 it started going parabolic up and is now showing contango at $60 or so.

Not only is the price increasing but the rate of change of price is increasing.

What are the markets saying here?

Of coures the argument against buying new cars can be extended to anything: what is the 'payback time' on a sunroof? Infinite of course.

It is almost always cheaper to keep your existing car than buy a new one. But people do buy new ones from time to time and then the question about which one to get becomes important.

PS: I just came back from a partially 3rd world country. Funny how people there can raise families, with children, and go camping and get around town, and even go on the dirt roads for many miles (in the country many roads are not paved). All on two wheel drive 4 cylinder "economy cars" (by US standards) with regular 15 inch wheels with regular tires. I'm sure they drove in the dirt more than 97% of US 4x4 or SUV drivers. And many of the cars are even French! (French brands at least, don't know where they're made).
 
"with this much inventory?"

That's the point of Peak Oil. Inventory is hydrocarbons in the ground.

People have been discovering much less than they used to, despite major increases in exploration techniques.

Once you've explored the Earth, there isn't any more planet to go around.

Over the last few decades, almost all of the "new production" has come not from actual major discoveries of virgin oil, but from technological improvements which has increased the recovery rate from known oil fields. Used to be 30%, now 75-80% and higher in some places.

But you can't go above 100%.
 
Have you seen the map of the oil and gas platforms in the gulf of mexico? They are all in Louisiana waters and Florida waters are completely unexplored. There is plenty of oil in America. You just lack the political will to explore for it. I guess you are saving it to use it last.
 
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