Yep, people have been converting gasoline cars to electric for a long time now. The VW pan works pretty well, especially if you also mount an aftermarket fiberglass body (saves weight, which in turn gives you longer range). But be careful how much battery weight you add to a VW - unless you beef it up (including the suspension mounts, springs, and brakes) you can overload it easily. I haven't seen the Zelectric conversion, but probably you shouldn't carry passengers in the back seat (to avoid overloading it).
The article is a little misleading about "not needing a transmission". It is true that an electric motor has enough torque to not need a transmission. But if you have a transmission and use it for climbing hills (etc.) you can extend your battery range, which is pretty useful. Also you can save extra wiring and other electrical components by using the transmission for reverse.
The Zelectric costs around $45,000. That's probably reasonable since he's providing and restoring the VW too. But you can buy a Nissan Leaf for about half of that, and have modern safety and conveniences as well as a warranty. But maybe the retro styling does it more for you.
