The DeLorean Saga: Fraud, Drug Deals and Marty McFly's Car
Summary
Tim Harford, Robert Smith, and Jacob Goldstein explore the rise and fall of John DeLorean, from his GM success to his infamous cocaine sting. The episode details how DeLorean leveraged UK government subsidies to build a factory in Northern Ireland, only to face quality issues, fraud allegations, and bankruptcy. Despite his legal acquittal on entrapment grounds, the company failed, though the car later gained fame in Back to the Future.
Topics discussed
Intro and sponsor messages
The DeLorean cocaine sting setup
DeLorean's rise at GM and the GTO
Leaving GM for a new venture
The sports car strategy and economies of scale
Raising capital and choosing Northern Ireland
Political context and factory construction struggles
Massive quality control failures
Financial collapse and the GPD scandal
The trial, entrapment, and Back to the Future
Lessons on industrial policy and competition
The monorail project and outro
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