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.