Another prestige podcast in the making, I suspect.
Six months after DeLorean Motors Reimagined, the startup seeking to produce a new incarnation of the 1980s sports car, said it would put is headquarters in Texas, a lawsuit filed against the company has thrown a potential wrench in its gears.
In the lawsuit filed this month, Karma Automotive, based in Irvine, Calif., and owned by a Chinese conglomerate, alleges that DeLorean Motors Reimagined was created based on intellectual property that its founders stole while working for Karma.
While the plaintiff’s claims could be difficult to prove, the timing of DeLorean Motors’ founding in relation to its lead executives’ tenure at Karma could appear suspicious enough to compel attempts to negotiate a settlement, a legal expert said.
And that’s not the only red flag surrounding this DeLorean entity, which is intertwined with a similarly named Humble-based company — DeLorean Motor Co. — founded about 30 years ago with its own history of being sued over intellectual property claims. The Humble company’s claim to the DeLorean name is key to the two companies’ joint venture.
DeLorean Motors Reimagined, which located its headquarters to San Antonio, has a cloudy background to go with a somewhat muddled identify. It hasn’t disclosed information about its investors or working capital even as San Antonio and Bexar County officials granted the company more than $1 million in incentives and tax breaks,. And while DeLorean Motors Reimagined is incorporated separately from DeLorean Motor Co., the former generally identifies itself as the latter, such as on its website and in a Super Bowl ad that accompanied its launch.
So far, the only plans DeLorean Motors Reimagined has announced involve producing 88 models of its pricey Alpha5 coupe two years from now. Still, CEO Joost de Vries said the startup will soon become a publicly traded company.
It’s also not clear whether the combined DeLorean entity ever bought the intellectual property rights of John Z. DeLorean’s original 1970s-era company, although a 2014 settlement agreement has apparently shielded it from lawsuits.
See here and here for the background. At this point, I’d be leery about the prospect of any cars actually mike it off their production lines. But if they do, they will come with quite the backstory. Read the rest and see for yourself.