The DeLorean Motor Company, founded by John DeLorean, faced several challenges that led to its failure. Some key factors include:
Financial Mismanagement: The company struggled with financial mismanagement, including cost overruns and a lack of proper budgeting.
Production Delays and Quality Issues: The manufacturing process was plagued with delays and quality control problems, leading to a reputation for producing unreliable vehicles.
Limited Market and High Price: The DeLorean DMC-12 was positioned as a high-end sports car, but it faced competition from well-established and more affordable alternatives.
Lack of Funding: The company faced difficulties in securing adequate funding to sustain operations and overcome its financial challenges.
Legal Troubles: John DeLorean himself was embroiled in legal troubles, including a high-profile drug trafficking case, which diverted attention and resources away from the company.
Economic Downturn: The early 1980s saw a recession, which further impacted the luxury car market and made it harder for the company to find a foothold.
Limited Model Range: DeLorean only produced one model, the DMC-12, which limited their ability to capture different segments of the market.
The Northern Irish-built sports car was designed to have a high-revving Wankel rotary engine in the middle, before plans then changed to a Ford V6 engine. This also didn’t work out, so DeLorean changed tack and went for a Citroen V6 that wasn’t powerful enough.
Political and Regulatory Challenges: The company faced challenges related to government regulations and compliance, which added to their operational difficulties.
Ultimately, a combination of these factors contributed to the downfall of the DeLorean Motor Company, leading to its closure in 1982.
You left out a serious problem; poor reviews concerning drive train power. The automotive press was disappointed in it’s lackluster performance. I’ve driven a couple of Deloreans, and found them sluggish and underpowered compared to cars like the 4 cylinder Morgan.
Hi Bill, I agree, interestingly a few of the recent restoration videos that I’ve watched folks are surprised that the PRV engine when set up properly wasn’t as bad as reported at the time. Having experience of Bosch Jetronic from my Ford tech days it was a fussy setup at the best of times. Also PRV was a pretty unknown quantity over your side of the pond which added to the fun 🙂
Edited Thanks Bill – The Northern Irish-built sports car was designed to have a high-revving Wankel rotary engine in the middle, before plans then changed to a Ford V6 engine. This also didn’t work out, so DeLorean changed tack and went for a Citroen V6 that wasn’t powerful enough.
See what you think of this 🙂 – https://wordpress.com/post/automotiveamerican.com/19588