NHTSA Order to ZAP Based on ZAP’s Failure to Reasonably Meet its Recall Remedy and Notification Requirement for 2008 Xebra Vehicles
On November 16, 2012 ZAP received notification from the Office of Chief Counsel of the National Highway Traffic Safety Administration (“NHTSA”) containing Findings, Conclusions, and Order on ZAP’s Failure to Reasonably Meet its Recall Remedy and Notification Requirements (“Order”), dated November 13, 2012, related to the recall of ZAP’s model year 2008 Xebra, an electric three-wheeled motor vehicle with an enclosed sedan or truck body style.
NHTSA determined that ZAP has not reasonably met its recall remedy and notification requirements and was ordered to remedy the model year 2008 Xebra by, among other things, refunding the purchase price, less reasonable allowance for depreciation, providing notice of this refund remedy to model year 2008 Xebra owners, purchasers, and dealers, and picking up and disposing of each recalled vehicle at ZAP’s sole expense. NHTSA determined that the average market price of a model year 2008 Xebra as of October 12, 2012 to be $3,100. The order stated a total of 691 model year 2008 Xebra vehicles are subject to this remedy. ZAP’s internal records indicate that 691 vehicles were imported
into the U.S. by ZAP, of which 627 were shipped to customers located in the U.S.
ZAP was ordered to respond to NHTSA and to take certain other actions by November 26, 2012. ZAP intends to submit a request to appeal or reconsider the recall value of the vehicle in this order.