DeLorean Motor Company

The stainless steel sports car that became a time machine in the Back to the Future film trilogy.

The DeLorean Motor Company (DMC) was an American automobile manufacturer formed by automobile industry executive John DeLorean in 1975. It produced just one model, from early 1981 to late 1982—the stainless steel DeLorean sports car featuring gull-wing doors. Its history was brief and turbulent, ending in receivership and bankruptcy in 1982. In October 1982, John DeLorean was videotaped in a sting operation agreeing to bankroll drug trafficking, but was acquitted at the subsequent trial on the basis of entrapment. 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.

Quick Facts

Founder: John DeLorean
Industry: Automotive
Products: DMC DeLorean
Founded: 24 October 1975
Headquarters: Detroit, Michigan
Country: U.S.
Defunct: 26 October 1982

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.

Reader's Guide

Director Robert Zemeckis suggested the DeLorean for Back to the Future because it offered mobility and a unique design; the gull-wing doors would appear like an alien UFO to a 1950s family. 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. 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.