ZAP Awaits Court Decision on California Jurisdiction for Smart Car Lawsuit

[Peddlecar]

On a related subject, I am currently reading the "Smart thinking" book. It is pretty good reading, but I have to question how accurate it is, when many quotes are annonymous, (hearsay).

Also the entire book is full of incorrect spelling. The SWATCH guy was allowed to stay on a lot longer then I would have thought?

[lhoboy]

[QUOTE=Peddlecar;8538]
So if IHO is closest to being right, you are saying that ZAP practically had the distributorship rights in the bag, when they changed their mind. WOW, that happens in business just about every minute of every day.

QUOTE]


Yes, happens everyday, as do the resulting lawsuits. Should the tort laws be changes? Definitely. Are MB or ZAP the bad guys? Without the facts, no one knows. The Germans are known to be a bit heavy handed, and Florida businesses are known to attract shady operators (no idea whether either applies). Either party could be at fault. ZAP definitly has more to gain by pursuing a lawsuit.

[lhoboy]

Originally Posted by 24-42

Of all the speculation, quotes and selfserving opinions "Iho boy" is the closest to the factual story. Someday I'll tell all.

Donald,
Are you consulting to the plaintiff's legal team or directly with ZAP? You can answer that without violating client-consultant priviledge.

[spdickey]

Seems funny that ZAP is putting this stuff out right now as the new North American edition is being rolled out at the Los Angeles Auto Show. Me thinks ZAP is trying to move its stock up a few pennies.

[lhoboy]

Originally Posted by spdickey

Me thinks ZAP is trying to move its stock up a few pennies.

That would be my guess too.

[tedkidd]

What isn't clear to me is whether Zap was actually negotiating with MB, or simply negotiating with a client of MB.

And if they were in negotiations with MB, how far into the process were they? Had MB given them indication or encouragement to move forward?

Sounds like ZAP moved forward without having their ducks in a row (got over-enthusiastic), and when MB decided to go in a different direction ZAP found themselves with their pants around their ankles.

[MicroNut]

Originally Posted by tedkidd

Sounds like ZAP moved forward without having their ducks in a row (got over-enthusiastic), and when MB decided to go in a different direction ZAP found themselves with their pants around their ankles.

I think that's close. But no doubt there are two sides to the story and neither party (Daimler or ZAP) are entirely blameless in the nastiness that has ensued.

Having looked for historical information on the net, a few themes recur:

• The work done by G&K conversions, ZAP and some others demonstrated that there was demand for an Americanized smart. This may have played into Daimler's decision to go ahead with development of the 451 versus completely shutting down smart as a business unit.
• ZAP placed an unsolicited order for $1 billion worth of cars with Daimler in 2005. Daimler turned them down, and stated publicly as a reason that they had no confidence in ZAP's ability to pay for the cars (ouch!). ZAP claimed that damaged their reputation and sued. Daimler also stated that it never sells cars to independent distributors.
• Daimler subsequently signed a contract with Penske (an independent distributor) to do essentially what ZAP had offered to do, market the smart brand for them in the US.

Here are a couple of the sources:

http://www.wired.com/cars/energy/news/2005/06/68014

http://goliath.ecnext.com/coms2/gi_0....html#abstract

[spdickey]

To be able to analyze the abilities of ZAP and Penske to set up dealer distribution networks should be something the Daimler should be able to do and select the better candidate. I think it is obvious which is the stronger company.

To think that ZAP could show up in Stuttgart, wave millions of dollars in purchase orders in Daimler's face and demand they they be sold cars flies in the face of good business practice.

[rjdjbd]

Originally Posted by 24-42

Of all the speculation, quotes and selfserving opinions "Iho boy" is the closest to the factual story. Someday I'll tell all.

Donald LaFavor

Can't wait to see that information posted, since I live in Sonoma County and have knowledge of ZAP and their business practices, and have watched how they 'manipulate' the media with press releases to inflate what many see as their worthless stock... they’ve done this for literally years and I’ve never been fooled by it. Look at their financial history: how many times have they ever posted a profit? (Without the help of some financial settlement after filing legal action.) Check out ZAP; the bulk of their income comes from running a pot-lot used car lot and selling repossessions… come on, is DaimlerChrysler really going to tie in with that?

I’m not convinced that ZAP ever had a legally binding contract with DaimlerChrysler; it was more wishful thinking on ZAP’s part… they had the right idea, they just didn’t have the money to do the deal. In this case, the emperor (ZAP) has no clothes, so 24-42, please post the rest of the story, 'cause I think we already know it... the trading symbol for ZAP might as well be SCAM.