John DeLorean Built His Dream Car in a War Zone. Then He Did Something Even More Insane.

You spoke, we listened! Yesterday I asked if you’d be interested in hearing the stories of ventures that didn'‘t quite work out - and a resounding 86% of you said yes. So tonight we’re kicking off a brand new occasional series - "What Were They Thinking?" - stories of big ambitions that crashed and burned . . . and the million-dollar lessons they left behind.

First up? Maybe the most jaw-dropping entrepreneurial flameout in modern history.

Back in 1973, John DeLorean had it all.

He was 48 years old and one of the youngest vice presidents in General Motors history. The engineering genius behind the Pontiac GTO. A $650,000-a-year salary (and that was in 1973 dollars!) Tall, tan, and married to a supermodel.

By every measure, John DeLorean had won the game.

So he quit.

He walked away from the corner office because he wanted to build something of his own - an “ethical sports car.” Something beautiful. Something safe. Something with his name on the door.

Most entrepreneurs would have taken that $650K salary and started small on the side. Not John. He was going to build a car company from scratch.

And that's when the risks started to pile up.

The War Zone

John spent four years trying to raise money. American banks said no. American investors said no. Detroit laughed at him.

Then, in 1978, a strange offer landed on his desk.

The British government - desperate to create jobs in Northern Ireland during the height of The Troubles - offered DeLorean roughly $120 million in grants and loans. The catch? He had to build his factory in Dunmurry, a suburb of Belfast.

In a literal war zone. During a sectarian civil war. Where Catholic and Protestant workers had to cross paramilitary lines just to show up for their shift.

Most founders would have run for the hills. DeLorean ran to the hills. He took the deal.

And, against all odds, he pulled it off. In 1981, the stainless steel, gull-wing DMC-12 rolled off the Belfast assembly line.

The Collapse

But the timing was terrible.

A brutal U.S. recession hit. The car was overpriced at $25,000 (about $90,000 today). The market for luxury sports cars evaporated overnight. Only 9,000 cars sold before the cash ran out.

By October 1982, DeLorean Motor Company was in receivership. And John was staring at ruin.

Risk . . . and Then RISK

This is where the story goes from daring . . . to deranged.

Desperate to save his company, John DeLorean agreed to a $24 million cocaine deal with a man who turned out to be an FBI informant.

Cameras rolling in a Los Angeles hotel room, DeLorean lifted a suitcase of coke and called it "better than gold."

He was arrested on the spot.

The Aftermath

In a stunning twist, DeLorean was acquitted in 1984 on grounds of entrapment - the FBI had baited him at his most desperate moment. But by then it didn't matter. The company was dead.

Here's the wild coda though: in 1985, a little movie called Back to the Future turned the DeLorean into Doc Brown’s time machine and made the car immortal.

His business failed. His reputation never fully recovered.

But his car? His car became a legend.

The Takeaway

There is a world of difference between an entrepreneurial risk and a life-destroying one. Building a factory in a war zone was a wild but calculated bet. Selling cocaine to save the company was not.

As entrepreneurs, we take risks every single day - that's our job. But the lesson of John DeLorean is this: Know the difference between a risk that could pay off . . . and a RISK that could take everything away.

Are You Finally Ready?

After my recent SCORE webinar on Starting Your Own Profitable Newsletter, Diana contacted me and we are now in the process of creating and launching the newsletter she has always dreamed of. Yves also contacted me and I am now ghostwriting his Linkedin and we are launching his newsletter next week too.

If you are finally ready to launch your newsletter or make a splash on Linkedin, let’s talk. I offer both “Done-With-You” and “Done-For-You” options to help you skip the learning curve, jump to the front of the line, and immediately launch the sort of high-impact content that will get you noticed.

Book a free call with me here and let’s get to work!

Steal This Strategy

🎥 Watch — Framing John DeLorean (2019 documentary starring Alec Baldwin): The definitive breakdown of how it all came apart. Available on Prime Video, Apple TV, AMC+, and more.

📖 Read — Dream Maker: The Rise and Fall of John Z. DeLorean by Ivan Fallon & James Srodes: The gold-standard biography - from his rise out of poverty to the cocaine bust.

🔥 Bonus — On a Clear Day You Can See General Motors by J. Patrick Wright: DeLorean's own tell-all about why he walked away from GM. A masterclass in the moment an entrepreneur decides to bet on themselves.

🛠️ Free! 'Start Your Own Profitable Newsletter' Webinar: A free replay of my popular SCORE webinar on launching your own attention-grabbing newsletter. (Drop your actual link in here)

About Steve

Steve Strauss is the author of 18 books, and Inc. columnist, and a renowned hater of ketchup. Need a ghostwriter or a newsletter for your business? Contact Steve!