William Santana Li, Chairman and Chief Executive Officer – Prepared Remarks - Monday 22 March 2010 – 10:00am EDT

Carbon Motors Corporation and BMW AG Joint Press Conference

WASHINGTON, D.C. — Good morning, ladies and gentlemen. I appreciate all of you taking the time out of your busy Monday morning schedules to be here to focus your attention on jobs, the energy crisis, and homeland security. The first role of government is to protect its people. And it is therefore befitting that a homeland security company like Carbon Motors Corporation would make a major announcement today here in our nation’s capitol.

Today, I’ll share a bit about Carbon Motors, provide a quick update as we accelerate to full-scale production the Carbon E7, the world’s first and only purpose-built law enforcement vehicle, and announce a new key partner that will help us reach that goal.

First, though, a bit of background. Seven years ago, I received a phone call from a police officer pleading for a purpose-built law enforcement patrol vehicle because his colleagues were being unnecessarily injured and having their lives put at significant risk in the line of duty. He believed that by patrolling in a vehicle that was not 100 percent designed with the critical needs and safety of officers in mind, he and his colleagues were at serious risk. He rightfully felt that the brave women and men who were expected to place their lives on the line every single day deserved only the very best equipment to do their jobs.

And so we established what we called the Carbon Council, a users group of over 3,500 law enforcement professionals in all 50 states at the local, state, and federal level to help define a purpose-built vehicle for law enforcement. What we came up with was a list of over 100 key operating requirements a vehicle should have for law enforcement operations.

In the process it became evident that it was impossible to do this – from a technical and business standpoint – by modifying a retail passenger car. Instead we decided to develop an all-new, ground-up homeland security platform, “Designed by Law Enforcement, Exclusively for Law Enforcement.”

Carbon Motors Corporation was established to deliver on that critical mission of developing, producing, distributing, servicing, and recycling the world’s first and only purpose-built law enforcement patrol vehicle.

But what exactly is “purpose-built”? Purpose-built quite simply means, “exclusively built for a particular purpose” – a superior product built from the ground-up with one sole mission, dedicated and committed to one set of professional users. Our country builds purpose-built vehicles to put out fires, go into battle, clean our streets, collect our trash and deliver our mail. Why not a purpose-built vehicle, then, for patrolling our roadways, protecting our communities, and securing our homeland?

The F-35 Joint Strike Fighter, the MRAP All-Terrain Armored Vehicle, an emergency fire truck, a SWAT armored rescue vehicle, and the vehicle you see before you today, code-named the Carbon ‘E7’ are purpose-built vehicles on a very serious, clear and singular mission. The Carbon E7 is in fact so serious, that it will have a positive and material effect on at least five of President Obama’s cabinet-level departments including the Departments of Labor, Energy, Homeland Security, Justice, and Transportation.


  • When the Carbon E7 hits full-scale production in Connersville, Indiana, we project that we will have created in excess of approximately 10,000 new American jobs: 1,550 direct new green American jobs of national importance, 500 collocated supplier jobs, and 8,000 indirect jobs in the region.
  • Our country is staring at a nationwide fleet of over 450,000 imported law enforcement patrol vehicles that by some accounts are averaging a horrifying 11 miles per gallon consuming over 1.5 billion gallons of gasoline and emitting over 14 million tons of CO2 annually. The Carbon E7 will cut these figures by up to 40% and will be built on U.S. soil.
  • There are currently over 19,000 law-enforcement agencies across the U.S. As you might imagine, having each of these agencies purchase a vehicle from a local new car dealer, take it back to their respective agencies, and then have them physically install tens of thousands of dollars worth of equipment on an ad hoc basis is not the most efficient process to produce a patrol-ready vehicle. We estimate that if the whole country were to switch over to the Carbon E7 we could save taxpayers in excess of $10 billion over ten years.
  • In the U.S., law enforcement purchases approximately 75,000 new vehicles annually. Many, with their retrofitted array of aftermarket equipment, do not meet the federally mandated safety standards for automobiles. The Carbon E7 will meet or exceed all federally mandated safety regulatory requirements with the law enforcement and homeland security equipment fully-integrated into the vehicle – a new world-class standard – a purpose-built homeland security platform for our law enforcement first responders.

Back in September 2008, we completed the running prototype of the E7 and kicked off a nationwide tour of 47 stops across the country covering 20 states. What we found was an overwhelming demand for the E7. More than 350 law enforcement agencies in 48 states placed over 13,000 production slot reservations for the vehicle.

The most impactful and memorable day for me was when we stopped in Connersville, Indiana and were greeted by almost 10,000 people, on a day that was officially proclaimed “Carbon Motors Day”. Connersville traces its industrial history back to several automakers of yesteryear, including Auburn and Cord, and is also home to the invention of a particular type of forced-induction technology, namely the supercharger.

After assessing offers from five states, on July 29, 2009 we announced that Connersville’s automotive past would be a part of American’s homeland security future. And this past December, the City of Connersville, on behalf of Carbon Motors Corporation, acquired a mothballed 1.8 million square foot shuttered automotive facility on 183 acres.

We are presently redesigning and will soon commence work on the refurbishment of this brownfield site with a goal of turning it into a LEED certified new, green, industrial campus. It will house our headquarters, research & development, production, sales, service, and training in one integrated Carbon Campus.

To build on this momentum, on January 7th of this year Carbon Motors Corporation was advised by the U.S. Department of Energy that its $310 million loan application filed under the provisions of Section 136 of the Energy Independence and Security Act of 2007, had cleared its first major hurdle in the process, and had been deemed “Substantially Complete”. We continue to work collaboratively and in a positive manner with the Obama Administration as we drive to deliver on our collective commitment to put Americans back to work.

To make our bold vision a reality, Carbon Motors Corporation has traveled the globe in search of the absolute best technologies worthy of our brave women and men in uniform, technologies that will be delivered to the front lines of law enforcement in the Carbon E7. To date, we’ve announced almost 20 major suppliers and partners with operations in the US, including Lear, Autoliv, Durr, Lotus, BASF, Federal Signal and L-3 Communications.

Today, I am excited to tell you about a game-changing announcement to go along with our breakthrough product and business model.

One of the most important technologies for any vehicle designed for the rigors of law enforcement is the powertrain. It must endure the constant use, the stopping and starting, the sudden acceleration and high speeds. We have been focused on securing a powertrain technology that would provide improved safety characteristics, be extremely durable, have absolutely stellar performance, and could operate reliably 24 hours a day, 7 days a week, and 365 days a year.

And it would also have to be extremely fuel-efficient, dramatically cut CO2 emissions, and significantly reduce the overall operating costs currently plaguing the over 19,000 law enforcement agencies across our land. The technically correct solution for law enforcement was to find the absolute best, cutting-edge, clean diesel engine.

We searched methodically throughout the industry for the most advanced clean diesel engine on the planet that could be provided by a truly world-class partner.

Today I am here to announce that we have found that technology. And we have found that truly world-class partner. It is my distinct honor, and it is with great pleasure, that we announce to you today that Carbon Motors Corporation has selected BMW…as our powertrain technology partner. This announcement today is yet another major step forward in putting the Carbon E7, the world’s first and only purpose-built law enforcement patrol vehicle, into full-scale production.

We selected an innovative and leading edge company with which to partner to ensure that our first responders have only the best today and tomorrow, because that is what they have earned, and that is what they deserve! And for the long-term, we believe BMW’s technological expertise will be a key factor in enabling exports of the Carbon E7, which will help put even more Americans back to work.

We are forever grateful for our friends at BMW that understand that the protection of our citizens, against threats both foreign and domestic, knows no boundaries. And I am honored to have BMW join in this noble effort to put Americans back to work, to better secure our country, and to materially reduce our dependence on foreign oil. On behalf of Carbon Motors Corporation and the 840,000 law enforcement first responders across this great country of ours, I thank you.

We are tremendously appreciative that Ian Robertson, a Board member for BMW Group, has graciously made the long trip to be with us today for this exciting announcement. Thanks for coming Ian. We’ll look forward to hearing from you in a moment.

At this time, it gives me great pleasure to introduce Senator Lugar to offer his perspective on why it is in the national security and socioeconomic interests of the United States to accelerate the production of the Carbon E7. As you heard me say, Indiana has been extremely welcoming and enthusiastic towards Carbon Motors. We can’t thank the senator, and the entire Indiana congressional delegation, enough for their collective assistance and support in making this happen. And we’re delighted to have such a strong partner and advocate.

Ladies and gentlemen, the Honorable Richard Lugar, United State Senator from the great state of Indiana…

See Senator Evan Bayh’s (D-IN) Press Release
See Carbon Motors Official Press Release

About Carbon Motors Corporation
Carbon Motors Corporation is a bold homeland security company on a critical mission to design, develop, manufacture, distribute, service, and recycle, the world’s first purpose-built law enforcement patrol vehicle. Learn more at www.carbonmotors.com.

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