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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. What became of this project? Anyone know?

  2. Scott, could you post an enlarged photo of the exterior of the building? This will be a great addition to Walnut Street. This area will only continue to develop with additions like this. Also, please give us more updates on the "Cultural Trail light" expansion. Also a great move for the city, as long as there is maintenance money set aside.

  3. Great story IBJ! Citizens don't have a real sense of the financial magnitude of supporting Indy's sports and tourism sector. The CIB was a brilliant idea for creating a highly integrated public-private partnership to support this sector from the economic activity it generates. Unfortunately, most folks think the benefits of that economic activity accrue directly to the City budget, and it doesn't. So though the CIB is facing lean times (covering its costs while maintaining minimally acceptable reserves), the City is operating with deficit - less tax revenue than expenses each year - with a very fragile reserve balance. That's why it's so challenging for the City to fund basic needs or new intitatives (e.g. pre-k education; new jail), and some credit rating agencies have downgraded Indy from it's past stellar AAA status. More reporting on City finances would be welcomed.

  4. Sure, I'll admit that it bugs me to see that the IBJ.COM censors it's blog posts almost as much as the D of I does when someone points out the falsehoods and fabrications. _____But I think it bothers me almost as much that Captain/Defender/Disciple get his yanked too. You see, those of us with a sense of integrity, humanity, compassion, and a need for fact based opinion WANT to see all of his screeds posted. It makes our point so much better than we can do it ourselves.

  5. We're conflating two very different topics. Voter fraud is a myth and excessive gun violence is all too real. I just hope rational gunowners decide to stop being shouted down by the, well, let's call them "less rational" ones.

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