ColdFusion - John Delorean - FBI Agents, Civil War and a Car

Starting point is 00:00:02 Hi, welcome to another Cold Fusion video. An eccentric high-flying businessman, a civil war, politics, a timeless car, FBI agents, a multi-million dollar drug bust, glamour, fame and a meteoric downfall. It's one of the most incredible stories of modern times. This is the story of John DeLorean and his DMC-12 car, a unique car with a stainless steel exterior, gull wing doors and a cost of 400 million US dollars to produce, all to become a strange combination of a laughing stock and a cultural icon. John wanted to be the next Enzo Ferrari or Ferdinand Porsche and he would move heaven and earth to make it happen, even if it cost him everything.

Starting point is 00:00:50 You are watching Tull Fusion TV. John DeLorean was the Elon Musk of the early 1980s. His high-profile management of General Motors, Pontiac and Chevrolet divisions saw him quickly rise up the corporate ladder. In a time when executives were dull and conservative, John DeLorean was one of the first hyper-successful people in the corporate world to exhibit an eccentric life. While at General Motors in the 1960s, he demonstrated his engineering talent and quickly rose to manage the Pontiac division. At just age 40, he was the youngest to do so. John turned Pontiac from a grandmother's brand for older buyers to a muscle car by leading the legendary Pontiac GTO project. It was a risky move to put such a large engine in such a small car, and upper management were mortified, but the gamble paid off.

Starting point is 00:01:59 The Pontiac GTO went on to influence the American muscle car movement. His next project, the Pontiac Firebird, was also an all-time classic. Less than a decade later, he became the youngest ever. vice president of General Motors, the largest corporation in the world at the time. His jet black hair, paired with unbuttoned shirts, often violated almost all of the company's dress codes, but made him a charismatic figure in a sea of bland corporatism. He was a multi-millionaire, charming, capable of influencing people, and even played the jazz saxophone. During his meteoric rise, he was dating what would be his third wife, world's top fashion model, Christina Ferrer.

Starting point is 00:02:39 John first saw her on the cover of Vogue magazine. Later, he would make his own high-profile appearances in magazines. General Motors hated the press attention as it didn't suit their image, but they couldn't complain because John's sales numbers were making them a ton of money. John was in line to become the president of the biggest corporation in the world, but instead, he chose to give a press speech highlighting the company's flaws and publicly outing executives. General Motors wasn't happy and he was forced out of the company, but this didn't phase John.

Starting point is 00:03:12 Was it true that no one liked you there, John, that you're not a popular man? No, I think I got along with most of the people pretty well, although there were a few. You know, everybody in every organization has some people on your side and some against. He would leave to build his own car company, a feat that was thought to be impossible at the time. It hadn't been done in America since Chrysler in the 1920s. He was a risk-take a valuable asset that would eventually lead to his downfall. It would end with him sitting in an LA hotel with 27 kilograms of cocaine and FBI agents in the room next door. But that comes later on in the story.

Starting point is 00:03:50 John DeLorean starting his own company would begin one of the wildest rides in automotive history. By 1973, DeLorean would break the restraint of corporate life at GM. With little more than some drawings on the back of an envelope, his plan was to start his own company. called the Delorean Motor Company, or DMC. His dream of an eco-friendly, rust-proof sports car available to the masses manifested itself in the now-famous DeLorean DMC-12 car. The stainless steel body and hard lines were designed by legendary Geogato Gigario. The Italian designer had worked on everything from Ferraris to the Ford Mustang.

Starting point is 00:04:33 Its gulwing doors added to its unrivaled vision of the future. It looks as striking today as it did when it was being designed back in the late 1970s. In the movie Back to the Future, Marty McFly used a decked-out version of the DeLorean to transport back in time. The films helped to immortalize the DeLorean. In order to realize his vision, John needed financial backing. He raised over 17 million through his old automotive contacts, but he still needed much more. Then, John had a brilliant idea. He bypassed the traditional methods of raising money

Starting point is 00:05:11 and went straight to governments of regions with high unemployment, a very smart move. Northern Ireland at the time was the perfect opportunity. We went to Belfast because no one else would have us in the world. Everybody said it's inconceivable that in today's day that any new automobile company could survive. It's not possible. Who did give you the money?

Starting point is 00:05:31 So we went to Belfast because nobody else would go to Belfast. During the late 1970s, Belfast, the capital of Northern Ireland, was going through conflicts over-breaking off from the UK, and religious tensions were also high. Street violence, bombings, and assassinations were the norm. Unemployment was high at 33%, and investment was almost non-existent.

Starting point is 00:05:56 While most people saw this as a deterrent, John DeLorean saw an opportunity. In 1978, he would set up a person. factory against a backdrop of bombs and violence with the UK government bankrolling him the whole way. They were just happy to see jobs being created, as were the people of Belfast. Can you hope to justify the huge amount of government money that's gone into DeLorean? The Lourian has repeatedly said that he hopes very soon to be able to buy the government out and say we shall that money will return to the government. And of course the arrangements

Starting point is 00:06:29 provide that the government gets a royalty on every car. So if the production comes up to schedule, the sales are as Mr Delorean and his people think that they will be, then the thing will be a success and the government will be as pleased as anyone. The Delorean factory was state of the art with new production processes that had never been tried before at the time. While there was no shortage of applications, there was a shortage of skills. People who had never built a car before were thrown onto the assembly line. But surprisingly, for the most part, the two sides who had fought each other on the streets worked side by side, on the factory floor. DeLorean's brazen move to the troubled Northern Ireland was a

Starting point is 00:07:10 masterstroke at the time. Orders of John DeLorean's cars came rolling in over 30,000 before production had even began. His experience in the automotive industry was a huge brand advantage. Mr. DeLorean, they tell me that you're the best salesman in the world. If I came to you, how would you sell me one of your cars? Very proud of our car, which essentially I think is a major engineering contribution to the state of the art of automobiles. I'd sell it to you on a basis that it's a very comfortable, outstanding performance, outstanding handling. In the end, we hope that your cost of owning this car for a long time will be very, very small. The DeLorean slogan was Live the Dream and people bought into that dream. Consumer demand was so high that dealerships

Starting point is 00:07:59 were turning people away as others slapped down $5,000 in cash as a deposit just to get in line. the number of peoples we could attract who said, can I leave a deposit for the car? And we said, no, we're not taking any more deposits. It got to such a point that I said, the only way we'll take a deposit is $5,000 cash and don't bug me. The marketing campaign was spearheaded by the charismatic John DeLorean. He raised a lot of hype, much like Elon Musk is doing now. The car was so famous that even whiskey brands featured the Delorean car to sell their whiskey. Despite the glamour, the factory was in the middle of a literal war zone.

Starting point is 00:08:37 There were fire bombings, bullet holes through windows, and a manager's office was burnt down. As significant as these events were, this was the first problem of many for John DeLorean. As the DMC 12 began mass production, many engineering issues still remained with the car. The panels didn't always line up. The gullwing doors proved difficult to consistently replicate, and the inexperienced workforce had difficulty producing the number of cars it needed to stay afloat. Normally at the time, a new car model would take about five years to design. They were going to do it all in 18 months, and this was to earn enough money to stay in business. Production problems and time restraints saw many problems. By the final

Starting point is 00:09:22 design, parts from existing cars had to be used, and critically, the rear mounted engine wasn't powerful enough for the increased weight, so the car ended up being slow, with a zero to 60 time of 10 seconds. The car was originally supposed to cost 30,000 US dollars, but it was now twice that. Despite the problems, in January of 1981, the first car rolled off the line. The factory workers were elated. They had overcome the problems of political fighting and the killing outside, to come together and build something special. The company was hemorrhaging money, but by the end of 1981, they managed to increase production to 80 cars a day and actually became profitable. Over 7,000 cars were produced by that point.

Starting point is 00:10:05 The dealers just can't wait to get our products. I think the only thing we have to do now is be sure that we do a very professional job of building the car the way it's supposed to and delivering it. It looked like the Delorean Motor Company was going to make it despite all the critics. Then, disaster struck. In the United States, a terrible blizzard hit several states in the north. It hit so hard that it buried entire city. As a result, cities came to a standstill and people couldn't get to work.

Starting point is 00:10:38 The economic impact of this, along with a general recession, meant that people weren't keen or could afford to go out and buy a new car, especially a car like the Deloran DMC 12. Demand dropped overnight and the company, having only just become profitable, was not in a place to weather the storm. As the workers at the Belfast factory returned from their Christmas break, there was talk that there wasn't enough money to pay the wages. Only 3,000 cars were ever sold. Soon, reality would hit, and John DeLorean would begin as he always did to try and charm his way out of yet another problem. He said that he would fight for the company until his last breath,

Starting point is 00:11:20 and what he did next proved that he meant what he said. We've worked too long and too hard to let a few little aberrations bother us. It's important and we re-establish our public credibility and re-establish our relationship with the government on a positive basis. Both of the government. If you don't get any money from the government now. I think you'll be very pleased with the news

Starting point is 00:11:43 that you'll hear tonight. I can't tell you any more about it right now. John DeLorean was on the hunt for a bailout to the tune of $40 million. The UK government by now had changed leadership to Margaret Thatcher. Thatcher was not a fan of government subsidies, so seeing that the government had already forked out millions

Starting point is 00:12:00 to start the factory, she was unwilling to help. John was given a few months by the government to find an investor or declare bankruptcy. He took the DMC 12 to the New York Car Show, a promotional tour to conjure up investor interest. Rumors circulated about John DeLorean traveling to billionaires in the US and oil sheiks in the Middle East to try and find anyone willing to invest. But John DeLorean's luck and charm had finally run out. The factory was closed in mid-1982 with only a skeleton crew remaining

Starting point is 00:12:34 1,300 workers had been laid off and only 9,000 cars were ever made but the workers weren't taking it with little to lose they stormed the gates of the factory and occupied in protest but no investors meant that no one cared When you're walking out of the plant for the last time today How do you feel about it?

Starting point is 00:12:52 We're getting, I'm pretty upset What are your chances of getting another job now? No, I know. What's the mood of the restaurant? rest of the men who haven't been paid off today, how do they feel about their future? They feel sad as well. They're feeling very uneasy, uncertain. Their 13 week-long protests were completely in vain.

Starting point is 00:13:11 One man, however, did care, and he was going to take any means necessary to revive his company. Now it's a lot of information has surfaced really in recent weeks that would indicate and prove the fact that the British government put us out of business. We didn't go out of business. For example, a few months back when it looked like my company was going to start again, the British government took the body dyes, which is a single most expensive and complex component of our car. And they took them out in the middle of Galway Bay and threw them in the ocean. And the man who was trying to buy them from Columbus, Ohio, Marvin Katz, set a scuba diver

Starting point is 00:13:48 down with a strobe light and sure is shooting. There they are laying on the ocean floor, DeLorean Motorcars, Belfast, Northern Ireland, million dollars worth of the most beautiful dyes you've ever seen. And of course, if you want any proof of conspiracy, I think that doesn't. Having been rejected by seemingly every investor in the world, John DeLorean was desperate. He stepped into an elevator at a hotel near Los Angeles International Airport. He surely must have been thinking that this was his saving grace. Having just arrived from New York, he was going to meet with associates of his neighbor. He was going to discuss the deal that would save his company.

Starting point is 00:14:29 John sat down in the hotel room with his new associates. He thanked them for the opportunity, which to him was a godsend. As John gleamed with hope in his chair, 27 kilograms of cocaine sat on the table in front of him. He had just agreed to finance a cocaine deal for another 100 kilos. This would be worth a whopping 67 million US dollars. He would then use this money to revive his company. The thing was, John thought,

Starting point is 00:14:56 thought that he had outsmarted the dealers by giving them worthless stock in his company that was bankrupt and had no assets. He was going to get millions at no cost to himself. Several minutes later, the tides turned. As all of the men in the hotel room were toasting to their successful endeavors, two FBI agents let themselves in. It was a sting operation. They put John in handcuffs under arrest for conspiracy to obtain and distribute $67 million worth of cocaine. The footage was damning, and with John in handcuffs, the DeLorean Dream was over. In a matter of just 12 months, John DeLorean had gone from the top of the world to facing serious jail time. Good evening, this is the CBS Evening News, Dan Rather reporting.

Starting point is 00:15:44 It's a story of big business, big pressure, big money, and the crime of cocaine. It's the story of how and why, the FBI. FBI caught automaker John Z. DeLorean. When the DeLorean car first rolled out of the factory in Ireland last year, much of America was rooting for its success. Its creator, former General Motors Executive John DeLorean, had thumbed his nose at the big automakers, saying he'd show the industry how to build cars.

Starting point is 00:16:09 DeLorean's subsequent meetings with the dealers were then videotaped by federal authorities, who finally arrested him earlier this week. The question of entrapment, whether John DeLorean was unlawfully lured by federal agents into committing a crime is one strategy DeLorean's new attorney will have to tackle, although experts say it is not likely to work. A loan broker in Cleveland was on the verge of approving a $200 million loan that could have saved DeLorean's company. The Bible classifies pride as the deadliest sin, and it is. I freely accept the responsibility. My arrogance and my gigantic ego got me in a lot of trouble when the British government refused

Starting point is 00:16:49 to support my business. If I were a normal, rational guy, I would have said, if they don't want it, I don't want it, and I should have taken a walk and gotten another job instead because that car had my name on it, I was going to fight it out to the end. And as a consequence, I had to be broken, and here I am. Delorean had his fair share of bad luck over the past year, but he found himself on the right side of the coin this time. In 1984, miraculously, after a 22-week trial,

Starting point is 00:17:17 the jury found him not guilty on all accounts, ruling that the FBI had entrapped DeLorean. The jury saw it as a desperate attempt of a man who was willing to do anything to save his company and a government that took advantage of that fact. This was seen as the case because of President Reagan's recent war on drugs. The prosecution of DeLorean would have been a great government PR stunt. Delorean walked out of the court a free man, but his company was bankrupt and his reputation tarnished. A reporter asked if he would go back into the order industry, John DeLorean replied.

Starting point is 00:17:50 I don't know, would you buy a used car from me? Life as a hardworking industrialist has been tattered and torn. I don't know, would you buy a used car from me? The rest of John DeLorean's life was a shadow of his former ambitions. A few days after the trial, John's wife left him, and undoubtedly he had ruined his children's lives. He would pass away in 2005 in a small one-bedroom apartment. It was said that he was planning sketching.

Starting point is 00:18:20 for his next project when he had a heart attack. Ultimately, DeLorean Motor Company never saw the light of day again. John, was it always a dream to build your own car? I think it sort of came to me one time and I was making the new car announcement and were telling the dealers

Starting point is 00:18:41 and the public would have dramatic and miraculous new car this wasn't. It really wasn't. It was the same old car with the fenders bent a little bit differently. And so I thought, I just can't keep doing this. And so I decided to go off and try to do something more ethical from the standpoint of something that would last.

Starting point is 00:19:02 And that's where the stainless steel car concept came from. But I've had a had the idea for a long time. John's life events had the hallmarks of a blockbuster movie. From vice president of the biggest corporation at the time to civil war, crime, drugs, and FBI agents. This was the story of a man who had a dream. the story of how far someone is willing to go to make that lifelong dream happen no matter what. John DeLorean bent the rules to try something new. He pushed beyond what was thought to be possible,

Starting point is 00:19:34 but his desperation and some bad luck ended the DeLorean dream. But while it may all seem like a disaster, the cultural relevance of his car still lives on today. Wait a minute, wait a minute, Doc. Are you telling me that you built a time machine? Out of a Delorean? The way I see it, if you're gonna build a time machine into a car, why not do it with some style? It's mind-boggling to think what would have happened if another deal came through and he made it.

Starting point is 00:20:06 Maybe DeLorean would have had enough money to fix the teething problems of the first car. Perhaps the DeLorean Motor Company would be a revolutionary car brand today. I'm interested to know your thoughts on this story. Leave your comments below. So anyway, thanks for watching. My name is Degogo and you've been watching Cold Fusion and if you did enjoy this video, feel free to subscribe. I think the next episode will be on me, so if you do want to get to know me a bit better, stick around for that. All right, so I'll see you again soon for the next video.

Starting point is 00:20:37 Cheers, guys. Have a good one. Cold Fusion, it's new thinking.

ColdFusion - John Delorean - FBI Agents, Civil War and a Car

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