Case Study: The Delorean Motor Company

1290 Words 6 Pages
Introduction
There have been numerous successful companies, however, there have also been many companies that have failed. Unfortunately, The Delorean Motor Company was one of the companies that failed. John Z. DeLorean was the founder and maker of the DeLorean Motor Company that only built one car which was the DeLorean DMC-12. The DeLorean DMC-12 is one of the most well-known cars in America because of the movie classic Back To The Future, but before it became the popular classic car it is today, it was one man's broken dream. Mr. DeLorean lived life recklessly and with lack of restraints; coupled with the desire for fame and fortune that lead to his own downfall. John Z. DeLorean
John Z. Delorean father was an immigrant that worked at
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Delorean served in a number of high-level positions for seventeen years before General Motors in 1973, for multiple reasons. The biggest reasons why he left GM was because he did not like the conformist ideas that GM presented and he wanted to build his own automobile company. DeLorean also wanted to become more distinguished and widely known in the automotive industry. He thought he could accomplish more and obtain more fame by building his own company. His continuous boasting did not bode with his overseers. Since Mr. Delorean was a man who wanted it all, he wanted all the fame and glory and wanted no guidelines on how to do it. DeLorean thought he could do it alone and do it better than the people at GM. ("John DeLorean", 2017) Mr. DeLorean was a talented and a hard worker and is widely believed that he might have become the president of GM if he had continued working with them. ("John DeLorean", 2017).
The DeLorean Company The DeLorean Motor Company was founded on October 24, 1975 by John DeLorean. The company was founded in Detroit Michigan and unexpectedly set up factories in Dunmurry, Northern Ireland after they failed to set up in Puerto Rico. DeLorean’s only car was the DeLorean DMC-12, the company had a rough run with lack of demand for the DMC-12 as well as cost overruns and higher estimated break-even point.The Delorean Motor Company is now located in Humble, TX, however this is a mock company because it is not actually associated with the original company
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DeLorean’s first car and only car in the DeLorean company was the DeLorean DMC-12. This car was thought to be ahead of its time and a hit with the public. The new Design of this futuristic looking car was very sleek and ahead of the game. It had gull-wing car doors and was also a fairly new design for that the automotive industry and the public were still unsure of how they felt about the doors. The Stainless steel bodywork was also an uncommon design, which made it less prone to rust and significantly raised the price of the car. (Expensive Failures: DeLorean DMC-12). The car was about 25,000 dollars, as well as being sold in a 24 karat gold version which went for about 85,000 dollars. With inflation the price of the car today would be about 70,000 dollars and the 24 karat gold version would be about 238,000 dollars. (Expensive Failures: DeLorean DMC-12). The first prototype was made in 1976 and the production was scheduled for 1979, but by 1980 the factory in which the cars were going to be made in still had not been created and wouldn't be in production until 1981. Finally, after many delays, the car had been finalized and the factories were ready to start assembling the car, but there were still so many problems. The car was built very poorly, it was extremely overpriced and very underpowered. The number of DeLorean DMC-12s created were 9,000, which is a very small number for the first car of a brand new automotive company. (Expensive Failures: DeLorean

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