He claimed that the DMCL was deliberately closed for political reasons, and at the time of closing was a solidly viable company with millions of dollars in the bank and two years of dealer orders on the books.
Approximately 9,000 cars were made between January 1981 and December 1982, although actual production figures are unclear and estimates differ. Some of the cars manufactured in 1982, but not shipped to the states (as the US arm of DMC had no money to 'buy' the cars from the factory in Northern Ireland), with 15XXX and 16XXX Vehicle Identification Numbers are actually 1982 models that were given later VINs, dated 1983, by Consolidated International (now known as Big Lots), a company that had a buyback program with DMC and had bought out the remaining unsold cars and also the inventory of unused parts left in the factory after the bankruptcy.
Folk tales in Ireland attribute the failure of DeLorean to the fact that the company had destroyed a sacred fairy fort to build its factory.[10]
The DeLorean assembly plant was eventually occupied by the French automotive supplier Montupet, which began to manufacture cast aluminum cylinder heads for automobile engines at the Dunmurry facility in 1989.[11] As of Monputet's acquisition in 2015, the factory employed more than 600 people.[12] The facility is currently operated as Montupet UK, a subsidiary of Linamar Corporation.[13] A community of DeLorean enthusiasts reunite on a regular basis on the site's defunct test tracks (which they renovated for low-speed use), bringing along their replica DeLorean models to create a fleet that reached 62 DeLorean vehicles in June 2024.[14]
The lack of demand, cost overruns, and unfavorable exchange rates began to take their toll on DMC's 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 response to the income shortfall, a restructuring plan was devised where a new "DeLorean Motors Holding Company" would be formed, which in turn would have become corporate parent to DMC and each of its subsidiaries: DeLorean Motor Cars Limited (manufacturer), DeLorean Motor Cars of America (distributor in the U.S.) and DeLorean Research Partnership (a research and development company). In January 1982, due to United States Securities and Exchange Commission questions about the company's viability, the company was forced to cancel the stock issue for the holding company that DeLorean had hoped would raise about $27 million.
John DeLorean lobbied the British Government for aid, but was refused unless he was able to find a matching amount from other investors. What followed is a matter of debate between the British Government, the US Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), DeLorean, his investors, and the US court system. At some point in 1982, John DeLorean became the target of an FBI sting operation designed to arrest drug traffickers. He was arrested in October 1982 and charged with conspiring to smuggle $24 million worth of cocaine into the US. The key element of evidence for the prosecution was a videotape showing DeLorean discussing the drugs deal with undercover FBI agents Benedict (Ben) Tisa and West, although DeLorean's attorney Howard Weitzman successfully demonstrated to the court that he was coerced into participation in the deal by the agents who initially approached him as legitimate investors. He was acquitted of all charges, but his reputation was forever tarnished. After his trial and subsequent acquittal, DeLorean quipped, "Would you buy a used car from me?"
In the end, sufficient funds could not be raised to keep the company alive. DMC went bankrupt in 1982, taking with it 2,500 jobs and over $100 million in investments. The British Government attempted to revive some usable remnants of the manufacturing facility without success, and the Dunmurry factory was closed. DeLorean himself retired in New Jersey, and the dream with which he had mesmerized Britain's Labour government, of industry rising out of the ashes of The Troubles in Northern Ireland.
John DeLorean founded the DeLorean Motor Company in Detroit, Michigan, on October 24, 1975. He was already well known in the automobile industry as a capable engineer, business innovator, and youngest person to become a General Motors executive. Investment capital came primarily in the form of business loans from Bank of America and from the formation of partnerships and private investment from select parties, including The Tonight Show host Johnny Carson and entertainers Roy Clark and Sammy Davis Jr. Capital was also raised through a dealer investment program in which dealerships offering DeLorean's cars for sale were made shareholders in the company.
DeLorean also sought lucrative incentives from governments and economic organizations to pay for manufacturing facilities by looking to build his first factory in an area of particularly high unemployment. Initially considering Ireland, he proposed using a site in Limerick, but the Republic's then Minister for Industry and Commerce, Desmond O'Malley, decided not to support the project, later describing it as "all too good to be true".[9] A deal in Puerto Rico was about to be agreed when DeLorean took up an offer from the Industrial Development Board for Northern Ireland. Besides some early seed capital from Hollywood stars, the DeLorean Motor Company relied on the British Government for about $120 million of its $200 million startup costs according to The Times. The British Government was keen to create jobs in Northern Ireland to reduce sectarian violence. DeLorean was under the impression that the British Government, as part of this offer, would provide his company with Export Credit financing. This would provide a loan of 80% of the wholesale cost of the vehicles (US$20,000) upon completion and delivery for shipping.
