GEM is selling the electric vehicles to ZAP, which is setting up franchise rental sites throughout the state, EV Rental Cars, a car rental agency specializing in alternative-fuel vehicles, and other rental companies. The rental program is being conducted by independent business entities using GEM's four vehicle product lines: the 2- and 4-seat passenger models, and the short- and long-bed utility vehicle models. ZAP will operate one rental management company, handling all insurance and processing. ZAP's first franchise location opened recently on Balboa Island in Newport Beach, CA, with more locations expected during the course of the summer.