The DeLorean Saga: Fraud, Drugs and Marty McFly's Car - with Business History
Summary
Tim Harford joins Jacob Goldstein and Robert Smith of Business History to discuss the DeLorean Motor Company’s dramatic rise and fall. They explore John DeLorean’s career, the flawed stainless-steel car, and the controversial UK government subsidies for a Northern Ireland factory. The episode culminates in DeLorean’s infamous FBI cocaine sting, his subsequent bankruptcy, and the car’s eventual redemption through Back to the Future.
Topics discussed
Intro ads for Sierra Nevada, Tredelvi, and Grainger
Introduction to the DeLorean cautionary tale
The 1982 cocaine sting operation
John DeLorean's rise at GM and the Pontiac GTO
DeLorean's departure from GM and midlife crisis
Ads for The Unshakeables and JPMorgan Chase
Concept of the DeLorean car and economies of scale
Securing funding and choosing Northern Ireland
Political context of the Northern Ireland factory
Production delays, quality issues, and the recession
Financial irregularities and the GPD Services scandal
The entrapment trial and acquittal
Back to the Future and the car's cultural legacy
Ads for The Unshakeables and JPMorgan Chase
Lessons on industrial policy and government subsidies
DeLorean's monorail patent and closing ads
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