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: Many people think the stainless is heavy, but the car only weighs 2700 pounds - which is the same as a Mustang of the same era. Finances/Drugs - First, there are a lot of different versions of the stories about JZD and the cocaine. John spent 1 and only 1 night in jail, until bond could be arranged, and the jury acquitted him in very little time. Here’s a link that tells the story in a fairly positive light: Today in 1984: 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.