The DeLorean: How a Cocaine Deal Enabled Back to the Future

The DeLorean DMC-12, while not a screaming performer on the track, is one of the most iconic cars of the 20th century. Its all-stainless steel and no-paint exterior make it the perfect vehicle for Hollywood fantasy science, as demonstrated by the Back to the Future movie franchise. What other car is such a born natural for a Time Machine that blasts through the space-time continuum when it hits precisely 88 mph? Here’s the kicker. If not for desperation to keep a struggling car company afloat, overly ambitious FBI agents, an informant with a grudge and a suitcase of cocaine, Back to the Future might have been one more movie headed to Blockbuster shelves far too quickly.

John DeLorean: Automotive Rock Star

John Zachary DeLorean grew up with cars in his blood. His father was a union organizer at Ford Motor Company, and John’s first real job was at Chrysler, followed quickly by a short but successful career at Packard Motor Company. General Motors caught wind of the automotive engineering prodigy and recruited him, where he ran development programs for muscle cars like the Pontiac GTO, Firebird and Grand Prix. Before long, he became the youngest division chief in GM history.

DeLorean left in 1973 to build his own car — The DeLorean DMC-12.

The “So-So” DeLorean DMC-12

While it looks spiffy, the car was somewhat of a dud, leading to lackluster sales by the time it was introduced in 1982. It wasn’t very fast but at least it featured poor handling. Toss in some manufacturing and quality problems, and sales dribbled. Then there was the creeping price tag. Originally planned at $12,000, it skyrocketed to over $30,000 by 1982. Remember, this was back when station wagons roamed the earth, so a $30,000 car was more like a six-figure set of wheels today. Ultimately, some 9,200 were made, but only a couple thousand were sold.

Like many entrepreneurs, DeLorean begged and borrowed to get the company and an Irish manufacturing plant going. A down market and weak reviews shrunk incoming cash flows, and before long, DeLorean was desperate for a lot of cash—at least $17 million. That’s about $55 million today.

Drug Deals for Quick Cash

In mid-1982, DeLorean was approached by a potential investor, James Hoffman. One minor complication: Hoffman was a convicted drug smuggler turned informant. He was somewhat motivated to land a big fish for prosecution to help save his own skin. Hoffman pursued DeLorean relentlessly with promises of investors who could help save the struggling car company, and preliminary discussions continued.

Come October, Hoffman and DeLorean were inching toward a deal. DeLorean flew to Los Angeles and met with Hoffman and someone who turned out to be an undercover FBI agent. After some discussion, a suitcase with some 55 pounds of cocaine was plopped on the table as proof of a lot more to come. Yes, the “investors” were in the business of importing cocaine. The idea was DeLorean would invest a few million for the buy in South America, and everyone would get rich when the product ultimately sold in the States. Sales of this import deal would raise tens of millions, which, after various cuts among the players, would net DeLorean enough money to save his company.

The meeting could have ended a bit better for DeLorean, as he was arrested while still on the hotel property for narcotics trafficking.

He Said, She Said…

Fast forward to 1984 and the trial…

DeLorean’s defense team claimed big-time entrapment and produced some evidence of such, including claims of him sending an “if I don’t make it back from this meeting in Los Angeles” letter to his attorney before the meeting. He testified throughout the trial he was “playing along” out of fear. Then, testimony from a government agent or two illuminated the desperation to nail DeLorean, even to the point of fudging some evidence and court testimony. And there were claims of threats against DeLorean’s family should he elect not to participate in the scheme.

On the flip side, there are some damning clips on video of DeLorean talking about how the stuff on the table was “better than gold” and a champagne toasting wishing “a lot of success for everyone.” And then there was the fact that DeLorean had a lot to hide and he was desperate. He’d been plagued by accusations of financial mismanagement and improper spending of company money, so his potential willingness to participate in such a deal was not at all surprising. He was in a kettle of hot water, no doubt.

Only the jury knows… Guilty or not, DeLorean was acquitted by reason of illegal entrapment, but the car company was doomed, having declared bankruptcy back in 1982.

You Can’t Buy This Kind of Publicity

Whatever the real truth about the DeLorean Drug Debacle, Back to the Future producers and current DeLorean owners should be thankful for the timing that swayed the movie makers’ props decisions. The car itself, the global publicity of the company’s struggles, DeLorean’s flamboyant lifestyle, and, of course, the drug trial of the decade made the DeLorean the natural choice for Doc Brown’s homemade Time Machine. What movie marketing machine wouldn’t jump on all that free publicity just waiting to be exploited?

As a quick side note, early drafts of the movie scripts called for Doc Brown’s Time Machine to be constructed from an old refrigerator, but producers quickly discarded that plan as potentially dangerous. If the movie turned into a hit, they didn’t want kids climbing into old appliances to play “Time Machine.” It didn’t take long for the idea of using a car to take hold, just as the DeLorean occupied the news cycle. Director and co-writer Bob Zemeckis is credited with the idea of using a car to go “back in time.” As the story goes, Ford even offered a pile of money to make the Time Machine from a Mustang, but co-creator Bob Gale nixed that idea, exclaiming, “Doc Brown doesn’t drive a &^$#&* Mustang!”

While things didn’t end well for DeLorean himself, they did work out pretty well for his car. As we now know, that wire-wrapped Delorean is now one of the most iconic movie props ever.