Youngman Automotive Signs Second Exclusive Distribution Agreement with ZAP for North American Bus Market

31 January 2008

Youngman Automotive Group, one of China’s leading bus manufacturers, has signed a second exclusive distribution agreement with ZAP that grants it the rights to distribute the full line of Youngman buses in North America.

In October 2007, the two companies signed a joint venture agreement to manufacture, market and distribute electric and hybrid vehicles for the passenger car, truck and bus markets. (Earlier post.) ZAP will focus on marketing and distribution while Youngman will contribute manufacturing and development resources. Albert Lam is the Chairman of the joint venture company as well as a member of ZAP’s board of directors.

The more I look at the emerging market for advanced technology vehicles, the more I see that ZAP is one of the only companies offering a selection of vehicles available for sale today. Buses can only enhance ZAP's overall business plan and I decided, rather than wait until the joint venture vehicles become available, to do something today that can benefit both companies.

—Pang Qingnian, Chairman, Youngman Automotive Group

Youngman is currently manufacturing and exporting six bus platforms available in 71 different configurations with the capacity to build 10,000 units annually. Youngman and ZAP expect to introduce buses using electric, hybrid and other advanced technology power trains as part of their joint venture.

The new agreement is based on conventional bus technologies.

Youngman recently introduced advanced manufacturing technology to its facilities in a joint venture with Neoplan of Germany. Youngman expects to soon have the capacity to produce 200,000 vehicles per year, including a capacity to build 10,000 buses annually.