Zap G&K and Smart Automobile
Here's some information I found on the arduous course the smart car has taken over these many years.
Let's start with the initial deception.
Smart-Automobile LLC's and their domain was the start of the circus environment the smart car has caused.
Smart-Automobile can be traced back to 2003, when their domain came on line.
http://www.smartcar-usa.com
This site was very similar to smart USA's old web site and is still up and running.
http://smartcarusa.digitaldistrict.de/
The domain was nothing more than a lead generator. A one page, nicely published site that went nowhere, with no information, details, any Smart car content or real association to the Smart Car, till around April of 2004, again similar to smart USA's site.
All hype and no bite.
Mr. Heidemann the ring master asserted Smart-Automobiles LLC was an independent, privately-held company. He claimed to administer the direct importation and modification of automobiles to meet U.S. standards. Smart-Automobile LLC and its owner Thomas Heidemann represented to the NHTSA that he was part of Smart Automobile, Inc., when on July 18, 2003 he sent a report on behalf of Smart Automobile, Inc., through his attorney Mr. Ginsburg, to Mr. Sachs, chief of the NHTSA.
He was actual a contractor from Germany.
Regarding J.K. Technologies, the very first registered importer who petitioned for smart cars approval. Mr. Heidemann said they failed to carry their burden of proof that the 2003-2004 Smart Cars are eligible for importation and sale in the United States, and he request that J.K. Technologies petition be denied.
His comments to NHTSA basically tossed, J.K. Technologies under the wheels of the bus of the NHTSA and DOT, stopping the process right in its tracks!
Six days after Heidemann's bogus document was filed, a Jody M. Foster representing Mercedes-Benz USA L.L.C. filed for an extension on the same petition made by J.K. Technologies.
On the grounds they (Mercedes-Benz USA L.L.C.) needed more time due to the "sufficient engineering data had been submitted to enable NHTSA to make a determination whether the proposed vehicle is eligible for importation".
How can a manufactor monitor this process regarding their own products? Do not believe for one second both Heidemann and Mercedes-Benz USA did not have their own agenda.
In the mean time Heidemann who had worked with J.K. Technologies tossed them under the wheels of the NHTSA and DOT bus, stopping their process right in its tracks!
Smart-Automobile LLC's then hired registered importer G&K Automotive Conversion to do the modification for the Smart cars. I assume Smart-Automobile LLC, selected G&K Automotive Conversion and not Zap.
However, because of greed or just plain stupidity G&K Automotive Conversion petitioned for importation and sale of the cars but added 2002 models which meant the process had to start over. Then they compounded the felony by claiming to want to import 15,000 cars a year. This raised flags and put them into a different position of prominence. Making Zap a real car manufactor.
On May 11, 2004 SMART-Automobile LLC (Heidemann) signed a $10 million agreement with Zap. Making them, Zap the exclusive smart distributor. Something Heidemann had no genuine right or qualifications to allege and Zap had no right to assert. It would be like making me king of my city!
Heidemann got a million bucks cash of Zap's stockholders money and an additional 9 million in Zap stock. Heidemann did supply 5 smart cars to Zap. Five of the most expensive smart cars ever, at 2 million a piece.
Zap sued SMART-Automobile LLC and Heidemann and has since written off the debt.
After more delays than the Italian railroad G&K finally obtained some necessary EPA and DOT certifications for the Smart Cars to meet forty-five state standards. Certification for the remaining five States, California, Maine, Massachusetts, New York and Vermont may still not have EPA certification. G&K has certification for the cars till 2006.
Unfortunately, Zap had charged thousands of bona fide smart car buyers a $1,000 to get on the list to get their smart and charged a fee to several dealers across the country, charging fees from $50,000 to $100,000 to become a franchisee for Zap.
Zap, G&K and Smart-Automobile cried wolf pointed fingers at each other and any one else and misrepresented the facts for almost 3 years.
Now Zap is suing G&K. Several of Zap's franchisee is suing Zap and the cycle continues.
Zap's CEO did hold talks with smart GmbH officials in Germany on March 21, 2005 at the annual shareholders meeting.
On May 24 of the same year, ZAP placed a purchase order directly to the smart car GmbH and DaimlerChrysler Group. The order was for 76,500 Smart cars, approximately one half of smart's total sales that year!
Then they sent out one of their patented press releases. Claiming they had placed the order after being told not to disclose their meeting.
Ulrich Walker, president of smart, promptly rebutted Zap's press release. Saying smart GmbH was