RE: [DML] Re: Downfall of the DMC?

["Brian McCool" <bjmccool@xxxx>]

I agree on this point also. The conservative party that came to power in
England at this time wasn't as cooperative as the Labour party that approved
the original loan package to JZD. Whenever public funds are given to a
private company, the private company usually becomes a political football.
Same thing happened with Bricklin, and even to Chrysler. (The billion dollar
loan guarantee from the Carter administration wasn't looked on favorably by
the Reagan administration).

-----Original Message-----
From: jtrealtywebspannet [mailto:jtrealty@xxxx]
Sent: Friday, September 27, 2002 9:07 AM
To: dmcnews@xxxxxxxxxxxxxxx
Subject: [DML] Re: Downfall of the DMC?


IMHO although there were mistakes made by the management of DMC and
market forces were against them the single biggest misstep was the
change in political parties and control of the British Government.
They were no longer sympathetic to DMC and not only did they not help
when DMC got into trouble they "helped it along faster downward" by
insisting DMC hire all of the people it had promised it would (which
caused production to increase) and then withheld loan payments which
DMC would have used for operating capital. The proof of how badly the
Government turned against DMC is that they forced the company into
bankrupcy, sold it for a pittance (they could have made some deal with
someone to keep the most modern auto plant in the world active) and
then scrapped the dies that could have been worth something to
someone. The government was more interested in burying a relic of the
previous administration and blaming them for all of the losses. DMC
was caught in the middle of a fierce poitical battle and was a
casualty along with the hopes of peace in Northern Ireland for 15
years.
David Teitelbaum
vin 10757



--- In dmcnews@xxxx, "Brian McCool" <bjmccool@xxxx> wrote:
> If I had to narrow it down to one specific event that brought the
company
> down, I would say it was the decision in November of 1981 to double
> production of cars from 40 a day to 80 a day. The country went into
a
> recession and had a very bad winter about a month after this, which
affected
> every car manufacturer negatively, especially DMC. JZD did this
partly to
> make the company look more impressive right before a planned public
offering
> of the company's stock that ended up being canceled. By doubling
production





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