DeLorean Motor Company

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Lore & Background

John DeLorean founded the DeLorean Motor Company in Detroit, Michigan, on October 24, 1975. He was already well known as a capable engineer and the youngest person to become a General Motors executive. Investment capital came from business loans from Bank of America and partnerships with investors including Johnny Carson, Roy Clark, and Sammy Davis Jr. DeLorean sought incentives from governments to pay for manufacturing facilities, eventually accepting an offer from the Industrial Development Board for Northern Ireland. The British Government provided about $120 million of DMC's $200 million startup costs, keen to create jobs to reduce sectarian violence. Construction of the 660,000 sq ft manufacturing plant began in October 1978 in Dunmurry, a suburb of Belfast. Unit production began in early 1981 after engineering delays and budget overruns. The lack of demand, cost overruns, and unfavorable exchange rates took their toll on cash flow in late 1981. The company had estimated its break-even point to be between 10,000 and 12,000 units, but sales were only around 6,000. In March 1982, Bank of America sued for defaulting on loan payments. John DeLorean was arrested in October 1982 and charged with conspiring to smuggle $24 million worth of cocaine into the US, but was acquitted on the basis of entrapment. Hours before his arrest, the British government announced it would close the production plant. DMC went bankrupt in 1982, taking with it 2,500 jobs and over $100 million in investments. Approximately 9,000 cars were made between January 1981 and December 1982.

In Their Own Story

The DeLorean was featured in the Back to the Future film trilogy (1985, 1989, and 1990) as the car made into a time machine, although the company had closed before the first film was made. The real-world company had gone bankrupt in 1982, making the cars available for the film's production. The stainless steel body panels were attractive and impervious to corrosion, but the sheen surface tended to show fingerprints and meant the car could not be easily painted; every DeLorean looked identical. Some dealerships painted their cars to make them distinctive. The vehicle had a waiting list of prospective buyers prior to its release, with a list price of $25,000 (approximately equivalent to $89,000 in 2025). Reception was mixed—Road & Track observed a 0–60 mph time of 10.5 seconds, noting it was "not quick for a sports/GT car in this price category." The franchise's legacy has turned the DeLorean into an enduring pop culture icon, now synonymous with time travel itself.

Reader's Guide

The selection of the DeLorean for the Back to the Future films was driven by its unique stainless steel body and gull-wing doors. The real-life company had gone bankrupt by the time production began, making the cars available. The DeLorean was featured in the film trilogy (1985, 1989, and 1990) as the car made into a time machine. The real-world car had a 12-month, 12,000 mi warranty for 1981 models. By 1982, improvements in components and a more experienced workforce meant production quality was vastly improved. Approximately 9,000 cars were made between January 1981 and December 1982. After the bankruptcy, Consolidated International (now known as Big Lots) bought out the remaining unsold cars and unused parts. A community of DeLorean enthusiasts reunite regularly on the site's defunct test tracks, bringing their replica DeLorean models to create a fleet that reached 62 DeLorean vehicles in June 2024.

Did You Know?

• The DeLorean Motor Company produced just one model, from early 1981 to late 1982.
• John DeLorean was acquitted of drug trafficking charges on the basis of entrapment after being videotaped in a sting operation in October 1982.
• The British Government provided about $120 million of DMC's $200 million startup costs.
• Approximately 9,000 cars were made between January 1981 and December 1982.
• The DeLorean was featured in the Back to the Future film trilogy (1985, 1989, and 1990) although the company had closed before the first film was made.