DeLorean Motor Corporation

1
DeLorean Motor Corporation
Accounting Theory
Rocco S. Rossetti
August 23, 2001
2

• Grew up in Detroit
• Lawrence Institute of Technology
• Chrysler Institute

- Industrial Engineering - Business
Administration
- Complete his MBA
3

• Packard Motor Car Company
• General Motors - Pontiac

- Ultramatic
- GTO
4
GMS Car Truck Group

• Buick
• Cadillac
• Chevrolet
• Oldsmobile
• Pontaic

5
John Z. DeLorean Corporation (JZDC)

• Allstate Insurance Company
• Ryder Trucks
• W.R. Grace
• Renault

6
Allstate Requirements
John Z. DeLorean Requirements

• Match or Exceed Current
• - Safety Standards
• Survive a 40 m.p.h. Crash
• Good Brakes
• Weigh lt 2,500 pounds
• 25 mpg at 50 m.p.h.
• Sell for under 7,000
• Mass produce

• Stainless Steel
• Elastic Reservoir Molding (ERM)
• Energy Absorption Front End,
• Gull Wing Doors.
• Anti-Theft feature
• Computer

7
Bill Collins
Bob Dewey
Edmund King

• Director Of DMC

• Engineer at Pontiac
• 20 Years with GM
• DMCs Chief Engineer

• Worked at GM
• DMCs CFO

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GIORGETTO GIUGIARO
Lotus Esprit
Sprint GT
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The Quest for Money
DeLorean Sports Car Partnership (DSCP)

• Research Development

Dealerships Become Investors

• 25,000 Dollars
• Purchase 50-150 Cars

• 5,000 Shares Of DMC
• Franchise

10
United States
South Africa
Porto Rico
Northern Ireland

• 500,000 sq. feet Factory
• 50,000 sq. Administrative Bldg.
• Test Track
• Storage Space

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Dunmurry, Northern Ireland
British Government
DMC

• 120,000,000
• Building Tooling Equipment Cost
• 50,000 per Employee
• 1st 6 Months Pay 50 Labor Cost
• Donate 160,000 per Month

• 2,500 Workers
• -50 Catholics
• -50 Protestants

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We Build A Safe, Fuel-Efficient and Ethical
Sports Car
70 Cars Parked

• Door Alignment
• Gas Pump Safety Switch

No Uniqueness

• 22.5 mpg

• No Airbags

• No Stainless Body

• No ERM

• 0-60 mpg 10 Sec.

• Could Not Repair Stainless

13
Problems

• British Pound - U.S. Dollar

• Recession
• John DeLorean

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DMC R.I.P. - October 19, 1982
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DeLoreans Super Car

• 1,000,000 Dollars
• 1,250 Horsepower Engine

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Stainless Steel Titanium Lithium Capacitor
3,495.00
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• Conclusion
• Never went Public

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The End