The Infamous DeLorean DMC-12

In October 1976, the first prototype DeLorean DMC-12 was completed by William T. Collins chief engineer and designer (formerly chief engineer at Pontiac). Originally, the car's rear-mounted power plant was to be a Citroën Wankel rotary engine, but was replaced with a French-designed and produced PRV (Peugeot-Renault-Volvo) fuel injected V-6 because of the poor fuel economy of the rotary engine, an important issue at a time of world-wide fuel shortages. Collins and DeLorean envisioned a chassis produced from a new and untested manufacturing technology known as Elastic Reservoir Moulding (ERM), which would contribute to the light-weight characteristics of the car while presumably lowering its production costs. This new technology, for which DeLorean had purchased patent rights, would eventually be found to be very suitable.

These and other changes to the original concept led to considerable schedule pressures. The entire car was deemed to require almost complete re-engineering, which was turned over to engineer Colin Chapman, founder and owner of Lotus. Chapman replaced most of the unproven material and manufacturing techniques with those currently being employed by Lotus. The Backbone chassis is very similar to the Lotus Esprit. The original Giorgetto Giugiaro body design was left mostly intact, as were the distinctive stainless steel outer skin panels and gull-wing doors.

In an interview with James Espy of the resurrected DeLorean Motor Company in Texas, a drawing surfaced showing that the car was potentially to be called Z Tavio. John DeLorean's middle name and his son's first name were both Zachary while Tavio was his father's name and his son's middle name. Due to only sporadic documentation, there is little more that is currently known about the Z Tavio name and why it was ultimately rejected in favor of the DMC-12.[2]

The DMC-12 would eventually be built in a factory in Dunmurry, Northern Ireland, a neighborhood a few miles from Belfast city centre. Construction on the factory began in October 1978, and although production of the DMC-12 was scheduled to start in 1979, engineering issues and budget overruns delayed production until early 1981. By that time, the unemployment rate was high in Northern Ireland and local residents lined up to apply for jobs at the factory. The production personnel were largely inexperienced, but were paid premium wages and supplied with the best equipment available. Most quality issues were solved by 1982 and the cars were sold from dealers with a 12 month, 12,000-mile (19,300 km) warranty and an available five-year, 50,000-mile (80,000 km) service contract.

The DeLorean Motor Company went bankrupt in late 1982 following John DeLorean's arrest in October of that year on drug trafficking charges. He was later found not guilty, but it was too late for the DMC-12 to remain in production. Approximately 100 partially assembled DMC's on the production line were completed by Consolidated International (now known as Big Lots). The remaining parts from the factory stock, the parts from the US Warranty Parts Center, as well as parts from the original suppliers that had not yet been delivered to the factory were all shipped to Columbus, Ohio in 1983–1984. A company called KAPAC sold these parts to retail and wholesale customers via mail order. In 1997, DeLorean Motor Company of Texas acquired this inventory.[3] There has also been a long-standing rumor that the body dies were dumped into the ocean to prevent later manufacture. More recently, evidence emerged that the dies were used as weights on commercial boats.[4]

A total of about 9,200 DMC-12s were produced between January 1981 and December 1982.[5] Almost a fifth of these were produced in October 1981. About 1,000 1982 models were produced between February and May 1982, and all of these cars had the VIN's changed after purchase by Consolidated International to make them appear as 1983 models. There are the 15XXX, 16XXX, and 17XXX VINs which were originally 10XXX, 11XXX and 12XXX VINs. Only twelve 12XXXX VIN cars still exist. These are the Wooler-Hodec right-hand drive cars.