Hello Connersville!

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Hello Connersville!

The day before I was due to arrive in Connersville for the very first time (a trip scheduled to evaluate the area as a potential site for Carbon Motors to call home), our management team caught wind of a what might be brewing in this VERY American, Midwestern town. The City was said to be pulling out all of the stops to insure that they earn a top spot in the site selection process – signs were posted in every yard and on every corner, trees were trimmed and flowers planted, and thousands and thousands of Hoosiers all teamed up to welcome us to Indiana. Obviously, they were successful… because today marks the one year anniversary of that first trip and what the Mayor and the City of Connersville declared to be “Carbon Motors Day” – 05 May 2009.

On 29 July 2009 after reviewing offers from the Michigan, South Carolina, Georgia, and North Carolina, and in front of almost 10,000 Americans, Carbon Motors Corporation declared along with Governor Mitch Daniels (R-IN) that the Company would call Connersville, Indiana its home.

Since that tremendous day in early May – which I still number as one of the best days of my professional career – we’ve worked tirelessly to make our collective vision come true. And we’ve done so with the help of many of our new neighbors who have demonstrated the same commitment that made Carbon Motors Day such a resounding success. I want to share some of the accomplishments we’ve made over this past year with you, so here we go – buckle up!

August 2009
On 12 August 2009 we filed our application with the Department of Energy for a $310 million loan (NOT a grant) under the provisions of Section 136 of the Energy Independence and Security Act of 2007 (the “ATVMIP – Advanced Technology Vehicles Manufacturing Incentive Program”).

October 2009
After months of working through numerous legal, financial and environmental issues, Carbon Motors Corporation accepted the formal offer and incentive package from the State of Indiana, Fayette County, and the City of Connersville – I signed the agreement on 20 October 2009.

December 2009
The City of Connersville took over the shuttered auto parts plant on the north end of the city.

January 2010
We began to turn the above mentioned property into the Carbon Campus – defining work flows/layout, sketching exterior building designs, evaluating inbound/outbound traffic and logistics, etc.

On 12 January 2010, the Department of Energy notified Carbon Motors that their application for the ATVMIP loan was deemed ‘substantially complete’, thus clearing the first major milestone in the loan process.

The Company recruited Mike Cowley as its director powertrain systems. Mike is a seasoned product development and powertrain executive with 32 years of automotive expertise centered on delivering new vehicle concepts and technology into production.

Autoliv Inc. was designated as the preferred supplier of the E7’s air bags, seat belts and related safety sensors.

February 2010
Carbon Motors held a dedication ceremony and placed its moniker on the street side of the Carbon Campus for all to see when entering Connersville.

Carbon Motors elected to collocate a portion of the Connersville Police Department on Campus.

Carbon hired Larry Kennedy as its director ORCA™ technology, bringing his more than 30 years of experience with Cadillac, OnStar, and Delphi to the team.

David Jobe joined the Crew as campus operations associate. His production experience spans more than 24 years in the areas of logistics, material handling, warehouse management and production supervision, most recently at Visteon.

Dalton Sprinkle was appointed as executive vice president and chief legal officer. He previously served as outside legal counsel for the Company and has developed a wealth of experience representing companies across the spectrum of the corporate lifecycle, both as inside counsel and at law firms such as Skadden Arps and Morgan Lewis.

Stacy Stephens was promoted to director communications after seven years of pure dedication and unwavering passion for Carbon’s efforts.

March 2010
Carbon Motors announced their partnership with BMW after many months of intense and very productive negotiations. This solidifies Carbon’s commitment to deliver a 40% improvement in fuel economy to the nation’s largest and most visible fleet – law enforcement.

April 2010
The City of Connersville and Carbon Motors co-hosted the Carbon Career & Information Day and provided information regarding the skills, education and competencies necessary to successfully compete for future high-tech green jobs at Carbon.

We made our 50th stop across the country on the Pure Justice Tour with the Carbon E7 in Houston. So far, we’ve covered 20 states and are sitting on over 13,900 reservations for the vehicle from over 400 law enforcement agencies in 48 states. We estimate this customer backlog to be in excess of $700 million in potential revenue.

We completed the plans for the Carbon Campus – plans that will propel a 50+ year-old, inefficient and mothballed brownfield site into a modern, 21st century, efficient and LEED-certified facility.

And finally, Carbon Motors has been featured by some of the most recognized and respected names in the media: USA Today, FOXNews, CNN, MSN, Fortune, Discovery Channel, Fast Company, American Cop and, of course, Connersville Speaks!

Not bad for a year’s worth of work! And everyone in Connersville should know that we will continue to fight as we have in the past, day and night to get this all done. We will work until our first responders have the appropriate equipment to protect our communities and better secure our homeland. And we will work to put a few thousand Hoosiers back to work. All good things take time and we will not let you down. Thank you for your continued and unwavering support!

William Santana Li
Chairman and Chief Executive Officer
Carbon Motors Corporation



Comments

Gerald R Conrad said:

THIS IS ALL GREAT, AND CONNERSVILLE IS EXCITED AND WAITING FOR SOMETHING TO HAPPEN ON THE SITE. CAN YOU SHARE WITH US THE LATEST ON THE LOAN. WHEN DO YOU HOPE TO HAVE INFORMATION FROM THE FEDERAL GOVERMENT SO YOU CAN START TO WORK YOUR PLANS FOR THE SITE. YES, WE ARE COMMITTED AND EXCITED, BUT IT WOULD BE SO NICE TO SEE SOMETHING START TO HAPPEN..

Charles Cox said:

Thanks I needed that it made my day. You keep working hard and our Sunday school class will keep praying for You.

Stacy Dean Stephens said:

Thank you, Mr. Cox! Mr. Conrad - we, too, are excited to get the ball rolling on the Carbon Campus. As a taxpayer, it should comfort you to know that the Department of Energy is doing their homework and not rushing through their process haphazardly so we have no estimate on their time frame for completion. We are, however, confident that the Obama Administration sees this as a win/win opportunity and is moving with a purpose and with conviction.

Ron Batt said:

This is great news for Indiana. How can companies like mine help out with design, engineering and prototype services?

james said:

Connersville needs the work. They have had some bad luck echonomically along with the rest of us. You said one of the reasons you picked Connersville was for the experienced work force. But at the carreer day all you talked about was this degree and that degree, so what about the experience now it has to have a degree ?

Buddy Glazner said:

Bill, you and your entire team are to be commended on your persistent approach to making a difference! Keep it up.

Carbon Motors Corporation said:

James - You are exactly correct: one of the key criteria Carbon Motors evaluated when looking for a place to call home was an experienced and educated workforce. Now that we have located in Connersville, IN the Company needs to ensure that we employ the best of the best for this very important undertaking. Law enforcement put their lives on the line for us every day, and we owe it to them to give them the best possible product made by the most expert, motivated, and dedicated workforce. The Company has proposed a requirement for an associate’s degree because the advanced level of technology in the product and the sophisticated nature of Carbon Motors’ assembly process generally require the education basis found in an Associates Degree program. Carbon Motors will provide the employment opportunity, and we want to be sure potential future employees have the education and experience required to be successful. Indiana’s WorkOne offers a number of outstanding workforce development programs and interested persons are strongly encouraged to visit one of their offices to learn more.

lewis.icon said:

We owe it to them to give them the best possible way of product made by the most expert, motivated, and dedicated workforce. The Company has proposed a requirement for an associate’s degree because the advanced level of technology in the product and the sophisticated nature of Carbon Motors’ assembly process generally require the education basis found in an outstanding workforce. ============================= lewis 3 Series Bmw

Justin F. Coffey said:

As a full-time college student pursuing dual-degrees in Criminal Justice & Psychology from University of Michigan, I'm also very optimistic that Carbon Motors receives the ATVM loan through the Department of Energy sooner than later. I've been doing a lot of research for an academic project on purpose-built law enforcement vehicles and subsequently have done a ton of research on Ford & GM's recently announced "purpose-built" police vehicles, Carbon Motors Corporation, and the "E7". Through the research I have learned a lot about Carbon Motors history and timeline and am curious regarding the DOE loan. I'm aware that back in January Carbon Motors received a letter informing them that the loan had been deemed "substantially complete". In a news article from a local media outlet dated 03 November 2010, I read that (and I quote) "Stephens says four of the five screening tests are already done. The final is a review of Carbon's financials to make sure the model is viable and the sales plan legit." Is it my understanding that the DOE has completed the "Eligibility Review" process and is currently conducting the "Substantive Review", specifically "(iii) a financial review" of the application? I'm aware the next step after that is the negotiation process which leads to a conditional commitment letter and ultimately, the loan agreement itself and eventual acquisition of the loan funds. I know that I--along with countless others--are curious, especially after reading reports that DOE officials recently visited the Carbon Motors location in Connersville.

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