Zap's Kentucky Manufacturing Partner Out, but EV Importer Says Plan Survives

We were skeptical last fall when Santa Rosa-based EV distributor Zap (it stands for "zero air pollution") unveiled a business partnership that, it said, would lead to construction of a million-square-foot electric vehicle factory in Franklin, Kentucky, that would employ 4,000 workers.

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Zap wants to build three-wheel Alias EV in Kentucky.

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Now there are reports that Integrity Manufacturing, which was supposed to help fund and then operate the plant, has closed its doors and no longer is part of ZAP's plan.

And in a recent SEC filing, Zap states that Randall Waldman, who'd been running Integrity Manufacturing, has resigned from Zap's board of directors. He's also sold his interest in Integrity Manufacturing -- which has been renamed Zap Motor Manufacturing.

Last fall, Waldman said that the EV factory on a 200-acre tract would be churning out the proposed Zap Alias three-wheeler and other Zap electric cars within a year.

That's not going to happen, but the new company apparently hopes to keep the Kentucky manufacturing dream alive.

The SEC filing says that its now privately held Zap Motor Manufacturing has "a worldwide manufacturing agreement with Zap to build Zap electric vehicles and other fuel-efficient transportation products at its Kentucky plant subject to certain terms and conditions."

Zap's filing also states that the new Zap Motor Manufacturing's chief executive officer is Gary Dodd, a former general manager at a Toyota plant. Darryl Keels, a former plant manager in Alabama for Mercedes-Benz, is the firm's president and chief operating officer.

A Zap spokesman did not immediately respond to a request for clarification. Neither did officials with the local industrial development authority in Kentucky.

But AllCarsElectric.com reports that Zap and Zap Motor Manufacturing have applied for a loan through the Department of Energy to fund construction of the proposed plant.

The original plan proposed by Integrity Manufacturing won a $48 million tax-incentives package from the state. No word on whether the tax break would be handed over to the new company.

Adding to the confusion, Integrity Manufacturing's Web site for jobseekers remained online earlier today.

Greg Johnson, Contributor

Posted by

John O'Dell March 9, 2009, 12:32 PM

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Plug-ins and Electric, Zap

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Electric Vehicle Factory Franklin Kentucky, Zap, Zap Alias