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Yes, they are still sellig 540s.
I personally saw 92 US certified, in one room awaiting shipment last Wednesday. They all were going to Texas.
This is from ZAP's annual report (SEC form 10KSB) for fiscal year 2006 (my emphasis):

We market many forms of advanced transportation vehicles, including electric automobiles, fuel-efficient vehicles, motorcycles, bicycles, scooters, neighborhood electric vehicles and all terrain vehicles. We market products designed solely by us, as well as products we design together with other companies. Most of our products are manufactured in China. Our automobiles are assembled outside of the United States, but made to comply with United States laws. The Smart Car Americanized by ZAP is manufactured and made compliant for sale in the United States by a registered importer. As of September 30, 2006, the Company no longer distributes the Smart Car Americanized by ZAP due to the unavailability of Smart Cars.
Perhaps the cars you saw belong to the Defiance Company, LLC (one of the other companies named in ZAP's lawsuit), which has taken over the import and distribution of gray market smarts:
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