Title: Why did the DeLorean Motor Company fail? - Quora
Headings: Why did the DeLorean Motor Company fail?
Why did the DeLorean Motor Company fail?
Content: Carmaker John DeLorean acquitted of cocaine smuggling charges by reason of entrapment - Legal Solutions Blog I also heard first-hand from a man that worked directly with John and DMC that they had been desperately trying to find additional funding. He told me that about one hour after John got on that fateful flight to LA that led to his arrest, a major bank called and said they would lend money to the company and all they needed at that point was John’s signature. With his arrest that day, the deal disappeared. The reason they were searching around for money (which is how he ended up talking to the FBI informant that led to his arrest) is that the sales were slower than expected, and they didn’t have the deep pockets to ride it out. Bigger, more established companies, had the funds to survive such slowdowns. If you remember, during the Obama presidency, automakers had to be bailed out after losing BILLIONS of dollars. When GM entered bankruptcy in 2009, it had about $80 billion in assets and $170 billion in liabilities. A recent story (2018) says the GM Europe has lost $20 billion since 2000. ( After losing $20 billion over 17 dismal years, General Motors may finally quit Europe) A startup company like Delorean couldn’t afford to run that deep into the red. Price - Supposedly, the “-12” in the car’s name, the DMC-12, referred to the target price of $12,000.