DeLorean DMC-12
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- Key People:
- John Zachary DeLorean
- Related Topics:
- automobile
DeLorean DMC-12, an innovative sports car, produced from 1981 to 1983, with gull-wing doors and stainless-steel body panels. It should have been the commercial coup of the century, leading to massive worldwide sales, but interest waned sharply in just a couple of years.
The cause for the failure of the DMC-12 was largely commercial. Although skilled entrepreneur John Zachary DeLorean had honed his engineering and management skills in the cut-throat world of American auto manufacture, notably when developing the iconic Pontiac Firebird and GTO “muscle cars.” When his employer, General Motors, showed reluctance to finance the successor, he founded the DeLorean Motor Company in 1975 and, basing his design on a Porsche that never went into production, developed the futuristic DMC-12 for the U.S. market.
In an early move towards the manufacturing outsourcing that would later become commonplace, DeLorean shopped around for the best start-up deal. He was about to sign with Puerto Rico when a better offer arrived from a British government desperate to stimulate the stagnating economy of Northern Ireland to help reduce rising sectarian tension. A huge manufacturing plant was built near Lisburn, with a projected capacity of 30,000 automobiles yearly, and the first DMC-12 rolled off the line early in 1981. But the workforce was inexperienced, resulting in quality-control issues. The car looked good, but at 130 hp and a 10 second gap between 0 and 60 mph, it was underpowered and overpriced compared with its competition. The DMC-12’s revolutionary stainless-steel exterior showed every mark from a fingerprint upwards and was hard to paint successfully. So every car leaving the factory looked identical, displeasing image-conscious American consumers whose sporty purchase was supposed to underline their individuality. Even so, the automotive press of the day was largely favourable, with a Car and Driver review saying that the DMC-12 was “fun to drive.”
DeLorean had originally planned to sell the DMC-12 for $12,000 (thus the 12 in its name), but economic reality forced him to price the car at more than twice that, about $88,000 in 2023 dollars. Sales soon faltered, and financial problems ensued. The British government refused to mount a rescue unless matching funds were forthcoming. John DeLorean failed to attract other investors and—despite proclaiming that it was a viable business with money in the bank and a healthy order book—his company went bankrupt in 1982. Some 2,500 jobs were lost, along with more than $100 million in investments. While trying to bankroll his failing company through the sale of cocaine, DeLorean was arrested in a government-sting operation in October 1982. The arresting agents, however, were found guilty of entrapment, and DeLorean was acquitted in 1984. When then asked if he planned to return to the car industry, DeLorean famously quipped, “Would you buy a used car from me?”
About 9,000 automobiles in the DMC-12 line were sold; about 6,000 were extant in 2023, supported by a thriving aftermarket parts industry. In 2016, a revived DeLorean Motor Company announced plans to revive the DMC-12, but nothing came of it. The first-year run of the DeLorean has become a highly sought collector’s item, for it gained considerable cachet for its role in the blockbusting Back to the Future film trilogy (1985–90), whose first installment appeared two years after the last DMC-12 was produced..