Category: Automotive History
Facts about DeLorean Automobiles. The DeLorean Car is an automobile company formed in 1975 by John DeLorean, who was an automobile business executive. The business is still remembered for its manufacture of the unique stainless steel model of DeLorean DMC-12 sports sedan, with gull-wing doors. It is also recognized for its brief and chaotic history, finishing in receivership and insolvency during 1982.
History of DeLorean Automobile
The DeLorean Motor Company was established in Detroit in Michigan by John DeLorean on 24th October 1975. He was previously celebrated in the automobile business as a competent engineer, business leader, and the youngest executive of General Motors.
During October 1978, the erection of a six-building industrialized plant was started in Northern Ireland and it was finished in 16 months.
Unit manufacture was planned to start in 1979, but budget overruns and engineering delays, resulted in the assembly lines to commence the production only during early 1981. Employees at the plant were generally inexpert, and several had no jobs prior to joining the company. This might be the major reason for quality problems attributed to the early manufacture of vehicles and the following the organization of Quality Assurance Centers, situated in different delivery localities.
The joint efforts of quality assurance developments at the plant and the post-manufacture quality assurance carried out at the Quality Assurance Centers were successful, even though workmanship complaints emerged occasionally. However, the 1981 model DeLorean vehicles were offered with a 19,000-kilometer (12,000 miles), 12-month warranty. During 1981, there were plans to manufacture a four-door stainless steel with gull-wing door version of the vehicle with a longer wheelbase for the 1983 model year. The shortage of demand, price overruns, and adverse exchange rates started to take their payment on the cash flow of the business during late 1981. The business had estimated their manage point to be between 10,000 and 12,000 vehicles, but sales were approximately 6,000 units only.
During January 1982, owing to the inquiries of the U.S. Securities and Exchange Commission regarding the viability of the business, the business was compelled to call off the stock issue for holding the business that DeLorean had anticipated that it would increase about $27 million. In the same year, developments in parts and the more knowledgeable labor force meant that manufacture quality was greatly improved. Disputes between customers and dealerships emerged later because several dealerships declined to carry out the warranty work, as they were not compensated.
Approximately 9,000 sedans were manufactured between the periods from January 1981 to December 1982, even though actual manufacture figures are uncertain and estimates vary. Some of the vehicles manufactured during 1982, but not delivered to the states, with Vehicle Identification Numbers 15YYY and 16YYY are, in fact, 1982 model vehicles, which were later provided with Vehicle Identification Numbers in 1983 by Consolidated International, the company which is now called as Big Lots. This business had an exchange program with DeLorean Motor Company and had procured the outstanding unsold vehicles and also the stock of idle parts left on the plant after the 1982 insolvency of the DeLorean Motor Company.
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