New Car Company Build-To-Order Inc. (BTO) Closes First
Outside Financing
Calif., July 11 Build-To-Order, Inc. (BTO), the
world's first automotive company that will deliver true build-to-order
vehicles directly to consumers, has raised $5 million in a first round
financing, with AK Steel Corporation as the founding investor in
BTO, it was announced today by Scott Painter, BTO chairman of the board. BTO
was formed in May 2001 through a merger of the former Model E Corporation and
Flint Incorporated.
In addition to AK Steel, founding shareholders also include
Gaffoglio Family Metalcrafters, Inc. a premier concept car builder;
SHR Perceptual Management, a brand positioning and identity leader with
significant experience in the automotive sector; Sky Dayton, co-founder of
Earthlink Networks, and McKinsey and Company, one of the world's leading
consulting firms which has also provided strategic counsel and advice to BTO
and helped in its business plan development.
With investor and partner support, BTO plans to deliver a portfolio of new
vehicles by 2004 utilizing a singular modular platform, computer-aided design,
contract engineering and manufacturing and a direct distribution channel. In
an innovative departure from traditional relationships, BTO will rely on a
dozen or so Tier One suppliers as module partners, in ongoing component work
that will serve as a model for future BTO alliances. "We are currently in the
process of selecting Tier One module partners who will help provide BTO with
the resources and expertise we need to meet our long-term goals,"
Scott Painter said.
"This funding will enable us to surpass the first of four major milestones
that include the accelerated development of a compelling consumer brand,
coupled with breakthrough product design, superior vehicle architecture and
engineering and a sound financial and operating platform," Painter said. "The
real significance of this round is the quality of the investor/ shareholders,
the speed with which we raised the funds and the financial coverage it gives
us to focus on our goals and roll-out."
BTO's founders include Scott Painter, founder and former chief executive
officer of CarsDirect.com, the country's leading online new car retailer, and
William Santana Li, founder and former chief executive officer of the former
Model E Corporation and a former Ford Motor Company executive. The BTO
management team also includes key car and operating/financial management
executives from Model E and Flint.
"We are enthusiastic about BTO's vision, expertise and prospects," Richard
M. Wardrop, Jr., chairman and chief executive officer of AK Steel, said.
"Together, we have a great opportunity to develop and deliver customized
automobiles to consumers employing new and superior materials, coupled with
leading edge design and construction. We share the vision that dramatic and
fundamental changes can be made in the automobile industry that will benefit
everyone with a stake in it."
With a stellar record in serving the automobile industry, AK Steel has
worked for several years to develop prototype vehicle components, including a
stainless steel space frame that offers superior strength and considerable
weight savings to traditional automotive designs. The resulting space frame
has the potential to improve ride and crashworthiness while reducing the frame
weight by about 50 percent. Approximately half of AK Steel's annual shipments
are made directly to the automotive industry. AK Steel has earned numerous
quality, service and delivery awards from virtually every foreign and domestic
car manufacturer in the United States.
"AK Steel is a superior alliance for BTO based on their track record that
bridges decades, demonstrated innovation in developing and adapting steel
products to the car business and their belief in and commitment to the future
of an industry that is being reinvented by people like us,"
William Santana Li, BTO president and chief executive officer, said. "This
investment and relationship is proof that we both have the foresight and
resources to build a totally new company that can deliver the build-to-order
vehicles that consumers want, will pay for and are coming to expect."
About AK Steel
AK Steel is headquartered in Middletown, Ohio. It employs about
11,200 men and women in plants and offices in Middletown, Coshocton,
Mansfield, Warren and Zanesville, Ohio; Ashland, Kentucky; Rockport, Indiana;
and Butler, Sharon and Wheatland, Pennsylvania. AK Steel also produces snow
and ice control products, and operates a major industrial park on the
Houston, Texas ship channel. Additional information about AK Steel is
available on the company's web site at http://www.aksteel.com.
About Build-To-Order Incorporated (BTO)
BTO is the world's first virtual car company capable of delivering true
build-to-order vehicles directly to consumers through the use of
computer-aided industrial design, an end-to-end technology infrastructure
solution, contract engineering, contract manufacturing and a direct
distribution channel. BTO is headquartered in the San Francisco Bay Area and
can be reached at http://www.btoauto.com or by calling the company's corporate
offices at 800-584-5000.