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BMW, Carbon Motors ink $1.35B supply contract

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Bayerische Motoren Werke AG, better known as BMW, has won a contract from Indiana-based Carbon Motors Corp. worth more than $1.35 billion to supply engines for U.S. police cars.

BMW, the world’s largest maker of luxury vehicles, will supply more than 240,000 six-cylinder diesel engines, cooling systems, exhausts and automatic transmissions to Carbon Motors, the Munich-based company said in a statement Monday.

The contract is the largest since BMW announced plans to step up engine sales to other companies in 2007. The owner of the Mini and Rolls-Royce brands currently supplies engines for boats and exotic car manufacturer Wiesmann GmbH in Duelmen, Germany, and is seeking to boost revenue after profit fell to a 10-year low in 2009 because of a loss at the auto division.

Carbon Motors, established in 2003, is developing the E7, billed as the first vehicle designed exclusively for U.S. police authorities. The company, seeking to capitalize on President Barack Obama’s efforts to reduce law-enforcement costs and curb emissions, is applying for a $310 million loan from the U.S. Department of Energy. Tom Ridge, the former U.S. Homeland Security secretary, serves on its board.

The company announced last year that it had selected the Fayette County community of Connersville in mideastern Indiana to manufacture its police cruiser in a 1.8-million-square-foot facility formerly occupied by Visteon Corp. The company said it could ultimately employ more than 1,500 workers.

The agreement “marks an important milestone” in BMW’s powertrain strategy and more deals will follow, Ian Robertson, the German carmaker’s head of sales, said in the statement.

“Efficient BMW diesel engines will benefit not only the environment, but -- thanks to the fleet’s lower running costs -- also the American taxpayer,” Carbon Motors Chief Executive Officer William Santana Li said in the statement.

BMW declined to comment on the timeframe for deliveries. Carbon Motors wasn’t immediately available for comment.

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  • Outsourcing
    How much taxpayer welfare has Carbon Motors received? Obviously there is no requirement that Carbon Motors buy from Indiana or other U.S. companies.
  • Demand for these cars
    So with all the cash strapped cities,states who is gonna buy these cars...is there really a demand/need???
  • I wonder if BMW would consider building diesels at the soon to be closed Navistar Plant.

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  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

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  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

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