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DeLorean Motor Co. Inc. has withdrawn its promise to create more than 400 local jobs to manufacture an electric version of the car made famous by “Back to the Future,” according to a letter written to Bexar County’s economic development office.
In the letter, dated Dec. 1, DeLorean Chief Operating Officer Bill Frazer asked the county to terminate its tax abatement agreement, which offered up to roughly $1 million in tax breaks and incentives with the city and county in exchange for creating 450 jobs paying at least $70,000 by 2026.
“This decision is prompted by a shift in the economic landscape and a strategic redirection of our business, which leads us to forgo pursuing the incentives at this time,” Frazer wrote.
The San Antonio-based company’s pullback from employment commitments is its latest major hiccup, which has customers who paid thousands of dollars to reserve one of the vehicles questioning whether their cars will ever be built. The company confirmed last month that its CEO had stepped down in the fall and said that customers would get more information about manufacturing plans early in the new year.
Bexar County Commissioners Court’s agenda for its meeting on Tuesday shows a vote scheduled over the tax break abatement. The economic development office is recommending that commissioners vote to end the agreement.
As part of the tax break agreement’s “commitment schedule,” as signed in October 2022, DeLorean said it would have 100 new employees by the end of that year and 300 by the end of 2023. The number would increase until reaching 450 in 2025 and be maintained until 2026, according to the contract.
The company also needed to invest roughly $18.5 million dollars, largely toward creating its headquarters at Port of San Antonio. Currently, a small office sits there.
Documents shared with commissioners ahead of Tuesday’s meeting state that DeLorean will continue to operate out of its office at the Port.
“To date no funds have been dispersed to Delorean Motor Company so no reimbursement is necessary,” the economic development office wrote.
The company never posted major hiring announcements online in 2023. It did not immediately respond to a request for comments regarding its current employment count after the San Antonio Express-News obtained a copy of its letter Monday.
One of the customers, Ken Brackins, who paid roughly $5,000 to reserve two DeLorean Alpha5 models, said part of the reason he was confident he and his wife would get a vehicle was because of the city and county’s support of the company.
Now, some of the roughly 1,200 people who bought nonfungible tokens to reserve one of the futuristic electric vehicles are regularly sharing posts in a public Facebook group about fears they were ripped off.
DeLorean has offered few public updates about its future.
In October, the company posted to its social media that it would have a “timeless drop” with Pepsi Co. in December. On Dec. 31, it wrote “something exciting is driving down the road from us and Pepsi.” But as of Jan. 8, nothing more had been announced.
Brackins said last month the “writing is on the wall.”
Former CEO Joost de Vries left DeLorean in late October, less than two months after a lawsuit accusing him and the company’s three other founders of stealing intellectual property from their former electric vehicle employer was settled out of court. Alan Yuan, previously DeLorean’s chief operating officer, is serving as interim CEO.
De Vries said in June 2022 that he was drawn to San Antonio because of its growth. He also said at the time that prototypes of the Alpha5 would be zipping around San Antonio by now.
“Despite the change, we are committed to maintaining open lines of communication with you and your team,” Frazer wrote to the county’s economic development office. “We genuinely appreciate your understanding and ongoing support.”
Jan 8, 2024
By Sara DiNatale
Sara DiNatale covers energy, labor and other business topics for the San Antonio Express-News. Reach Sara at (210) 446-3358,
sara.dinatale@express-news.net and @sara_dinatale.
