The History of DeLorean Motor Company
The Gullwing Legacy: The Rise and Fall of the DeLorean
In the annals of automotive history, few names evoke as much intrigue, nostalgia, and pop-culture reverence as DeLorean. For a fleeting moment in the early 1980s, this upstart American automaker captured the world’s imagination with a car that looked like nothing else on the road. With its signature gullwing doors, brushed stainless steel body, and futuristic design, the DMC-12 became an instant icon. Yet, the story of the DeLorean Motor Company (DMC) is not merely one of stylistic triumph; it is a tragic Shakespearean drama of ambition, political entanglement, financial miscalculation, and ultimate redemption through cinematic immortality.
The Founder: A Maverick Named John DeLorean
To understand the DeLorean Motor Company, one must understand its founder, John Zachary DeLorean. Born in Detroit, Michigan, in 1925, John DeLorean was a true automotive insider. He was an engineer by trade and a salesman by nature—charismatic, imposing, and relentlessly ambitious. After earning a mechanical engineering degree from the Chrysler Institute, he climbed the corporate ladder at General Motors (GM).
At GM, DeLorean was a rebel in a grey flannel suit. He was instrumental in launching the Pontiac GTO in 1964, a car that defined the muscle car era and cemented the industry’s shift toward performance-oriented vehicles for younger buyers. DeLorean rose to become the youngest division head in GM history, leading the Pontiac division. However, his relationship with GM’s staid corporate culture grew strained. He chafed under the “General Motors way,” advocating for more innovation and risk-taking. In 1969, after clashing with upper management over the design of the 1971 Pontiac GTO (which he famously disliked), DeLorean accepted a buyout and left the safety of the corporate giant to strike out on his own.
Birth of a Company and the Search for Capital
DeLorean’s vision was ambitious: he wanted to build a safety and performance-oriented sports car that could compete with European imports like Porsche and Ferrari but at a price accessible to the American middle class. This would become the DMC-12 (the “12” standing for 12 cylinders and $12,000 price point).
However, building a car company from scratch requires immense capital. DeLorean spent the early 1970s securing investors. He eventually found backing from wealthy individuals, including actor Johnny Carson and comedian Bill Cosby. However, the most significant and ultimately controversial source of funding came from the government of Northern Ireland.
In the mid-1970s, Northern Ireland was plagued by “The Troubles,” a violent sectarian conflict. The British government, desperate to create jobs and divert attention from the unrest, offered massive grants and loans to businesses willing to build factories in the region. DeLorean seized the opportunity. In exchange for building a manufacturing plant in Dunmurry, a suburb of Belfast, the company received approximately £52 million (roughly $80 million USD at the time) in government funding.
Factory Operations and Design Challenges
The DeLorean factory in Dunmurry was a study in contradictions. While John DeLorean was a visionary designer, he was not an experienced manufacturer. The factory, located in a conflict zone, was prone to sabotage and labor unrest. Workforce turnover was high, and the building itself required extensive retrofitting.
The car’s engineering was equally complex. DeLorean hired British Lotus founder Colin Chapman to refine the chassis and engine. The body, however, was designed by Italian Giorgetto Giugiaro of Italdesign. This international collaboration resulted in a car with a unique aesthetic: unpainted brushed stainless steel panels (chosen to avoid paint repairs and hide dents) and unpainted fiberglass “inner structure” body panels. The engine was a rear-mounted, 2.85-liter V6 sourced from Peugeot, Renault, and Volvo (PRV), producing about 130 horsepower.
The most iconic design feature—the gullwing doors—was a practical solution to the tight dimensions of the car and the factory’s inability to produce consistent door hinges. While visually stunning, they were mechanically complex and made the car difficult to enter and exit in tight parking spaces.
Hardships and the SEC Investigation
The DeLorean Motor Company faced hardships from its inception. The DMC-12, originally slated for production in 1979, was delayed until 1981 due to engineering changes and financial shortages.
While the car generated immense public interest, it was plagued by quality control issues. Early models suffered from oil leaks, transmission problems, and electrical gremlins. Furthermore, the performance did not match the looks. The car was heavy and underpowered, reaching 0-60 mph in roughly 8-9 seconds, which was sluggish for a sports car costing over $25,000 (approximately $85,000 in today’s dollars).
The company’s financial situation was precarious. In 1982, the situation took a dramatic turn. John DeLorean, facing bankruptcy, was ensnared in an FBI sting operation known as “Operation Fountain.” DeLorean was recorded discussing a cocaine deal with undercover agents, allegedly as a way to raise money to save his company.
In October 1982, DeLorean was indicted on charges of drug trafficking and tax evasion. The legal battle was fierce. DeLorean’s defense team argued entrapment, claiming the government pressured him when he was most vulnerable. In August 1984, after a high-profile trial, DeLorean was acquitted of all charges. However, the damage was done. The scandal, combined with the company’s mounting debt, had destroyed consumer and investor confidence.
The End of the Line: Bankruptcy and Liquidation
Following the indictment, the British government, which had guaranteed loans, moved to liquidate the company. In October 1982, the DeLorean Motor Company was closed. The factory in Dunmurry was shuttered, and approximately 150 remaining unsold DMC-12s were seized by the UK government.
The company filed for bankruptcy. In total, the DeLorean Motor Company operated as a vehicle manufacturer from 1981 to 1982. During this short period, they built approximately 9,000 DMC-12s (estimates vary slightly between 8,500 and 9,000). No further cars were produced after 1982, making the DMC-12 the first and only vehicle model the company ever produced as a complete car.
The Phoenix: The “Back to the Future” Effect
Just as the DeLorean Motor Company died, its legend began. In July 1985, Universal Studios released Back to the Future, starring Michael J. Fox and Christopher Lloyd. The film’s time machine was a DeLorean DMC-12.
The choice of the DeLorean was serendipitous; the filmmakers felt its stainless steel body looked “scientific” and the gullwing doors looked “spaceship-like.” The film’s massive success transformed the car from a failed sports car into a global pop-culture icon. Suddenly, the car that had been forgotten and ridiculed was desirable. Values of used DeLoreans skyrocketed, and a cult following was born.
Modern Revival and Current Status
The DeLorean name did not disappear entirely. In 1995, Texas-based entrepreneur Stephen Wynne acquired the rights to the DeLorean Motor Company name and the remaining inventory of parts. He established the new DeLorean Motor Company (headquartered in Humble, Texas), which focused on servicing and restoring existing DMC-12s.
In the 2010s, the company attempted to re-manufacture the vehicle using modern technology. Due to antiquated safety and emissions laws (specifically the “Low Volume Motor Vehicle Manufacturers Act” which took years to pass), they could not sell new cars immediately. However, in 2016, they released the DMC-12 “Alpha” prototype, featuring a modernized interior and a 3.5L V6 engine.
As of 2024, the DeLorean brand has undergone another significant change. In 2021, the company merged with a special purpose acquisition company (SPAC) to become a publicly traded entity, valuing the brand at over $1 billion. They have announced the DeLorean Alpha5, an all-electric grand tourer set to enter production. While not yet in full-scale delivery, the company currently exists and operates, aiming to reintroduce the brand for a new era of electric performance.
Notable Milestones and Racing
- 1976: DeLorean appears at the Geneva Motor Show with the prototype DMC-12.
- 1981: The first production DMC-12 rolls off the line in Dunmurry.
- 1981-1982: The DMC-12 appeared in the television show Knight Rider, further cementing its sci-fi status.
- Racing Programs: Unlike Porsche or Ferrari, DeLorean had no factory racing team. However, enthusiast groups and privateers have raced DMC-12s in events like the One Lap of America. In the modern era, the new DeLorean company has sponsored the “DeLorean Racing” class in SCCA events.
Sales Figures
- Total Units Sold (1981-1982): Approximately 8,500 – 9,000 units.
- U.S. Sales: Roughly 6,000 units were sold in the U.S.
- Global Sales: Roughly 2,500–3,000 units were sold in Europe and Canada.
- Price: The base price started at $25,000 (approx. $83,000 today).
Consumer Reception
When the car was launched in 1981, U.S. consumer reception was mixed. Auto journalists praised the design and highway manners but criticized the lack of power and poor build quality. Consumers were hesitant due to the high price tag and the company’s uncertain financial future. By 1982, as rumors of bankruptcy swirled, sales slowed to a crawl.
However, post-Back to the Future, reception shifted. The car became a beloved collector’s item. Today, a well-maintained DMC-12 can sell for $50,000 to over $100,000, far exceeding its original MSRP.
What Makes DeLorean Different?
DeLorean stands apart from other manufacturers for three primary reasons:
- The Stainless Steel Body: While some concept cars used stainless steel (like the Ford Thunderbird), DeLorean was the only mass-produced car to use it for the outer skin. The panels are 0.075-inch thick, 304-grade stainless steel. They were unpainted, held in place by over 300 exposed polished screws.
- Government Ownership: It was the only American car company largely bankrolled by a foreign government (the UK), leading to unique political and labor dynamics.
- The “Anti-Muscle” Muscle Car: Created by the father of the GTO, the DeLorean was designed as a safety and luxury sports car, deliberately avoiding the raw horsepower of the muscle car era in favor of stability and style.
Conclusion
The DeLorean Motor Company operated from 1973 (founding) to 1982 (bankruptcy liquidation), with vehicle production spanning only 1981 to 1982. It was a company defined by the charisma of its founder, John DeLorean, and the tragedy of his downfall. Financial mismanagement, quality control struggles, and legal battles ensured its early demise.
Yet, DeLorean achieved a form of immortality that eluded more successful automakers. The DMC-12 is not just a car; it is a cultural artifact. Thanks to the magic of Hollywood and a dedicated community of enthusiasts, the DeLorean name survived its own death. From the assembly lines of Dunmurry to the silver screen, and now to the emerging electric vehicle market, the DeLorean legacy proves that even in the automotive world, sometimes the greatest success is found in the resurrection of a dream.
