The rise and fall of DeLorean Motor Corporation

A car exec expected to run GM quit to build his own sports car — raised $100M+ from the British government, then collapsed after making just 9,000 vehicles.

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By The Numbers

$100M+

government funding raised

$34,000

final price at bankruptcy

9,000

total cars ever made

What They Nailed Early

Built a revolutionary design that looked like nothing else on the road. Stainless steel body, gullwing doors, Italian styling created massive buzz. John DeLorean's rockstar persona and marketing genius attracted Hollywood investors like Johnny Carson and Sammy Davis Jr.

What Changed

DeLorean ran the company remotely from his Manhattan penthouse, never spending a night at the Belfast factory. Custom engineering on nearly every part drove costs through the roof — the car launched at $25,000 instead of the planned $12,000. Inexperienced factory workers produced quality issues. Then the 1981-82 recession hit, interest rates soared above 20%, and luxury car sales collapsed.

Where it Landed

Bankruptcy in 1982 after just one year of production. Only 9,000 cars made. DeLorean arrested in FBI cocaine sting trying to save the company. Acquitted on entrapment defense but reputation destroyed. Back to the Future later made the car iconic.

The Principles

You can't build remotely what needs hands-on leadership. DeLorean tried to run a startup car factory from New York — quality and costs spiraled while he stayed in his penthouse.

Custom everything kills unit economics. Every bespoke part pushed the DMC-12 from a planned $12K to $34K — pricing it above Porsches without the performance to match.

Founder ego is expensive. Living like a mogul with Fifth Avenue penthouses and 430-acre estates while burning government money signaled misaligned priorities from day one.

Builder's Takeaway

If you're launching a hard-goods business, remember:

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Be where the work happens — remote leadership fails when execution is everything

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Use off-the-shelf components wherever possible; custom parts destroy margins fast

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Live like a startup founder, not like you've already won

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