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Carbon Motors seemed to be on track to produce its E7 purpose-built police car last year, but then the US Department of Energy rejected its request for a $310-million loan and the situation went south from there. The company filed for bankruptcy four months ago and had only produced one E7, a working prototype that isn't street-legal, and now it's up for auction, Indystar reports. Proceeds from the auction, which will be held by Indianapolis-based Key Auctioneers on Jan. 23, will go towards payi