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: 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. Delays, inflation, and probably some poorly optimistic planning meant that the actual price came out at around $25,000. This put it in the same ballpark as Porches and Corvettes of the time, but as mentioned above, the performance of the car was not in the same neighborhood. A lower price might have helped sales, but that price and the economic downturn certainly did not. I know this has been fairly lengthy, but on a personal note, I’d like to add that the car is a real hoot to drive, and today at least, is relatively inexpensive to acquire and own. There are still a good number on the road (estimates are around 6,000), and parts and service are readily available.