Image Credit: youtube.com/@Forbes

The latest chapter in the DeLorean saga is not about gullwing doors or time travel nostalgia, but about unpaid bills and a courtroom defeat. A $4.6 million judgment tied to the Alpha5 electric vehicle has put the company’s ambitious San Antonio pitch under a harsh spotlight, raising questions about who really controls the brand and who will be left holding the bag. The dispute reaches from Texas to Italy, and from digital renderings of a sleek coupe to a very real fight over design work that a key supplier says was never fully paid for.

The Alpha5 dream meets a $4.6 million reality check

The Alpha5 was supposed to be DeLorean’s modern reboot, an electric grand tourer that translated the 1980s icon into a battery powered future. Instead, the project is now synonymous with a $4.6 million judgment that underscores how quickly a high concept launch can unravel when the money does not match the marketing. Court filings describe a gap between the bold promises made around the Alpha5 and the financial commitments that followed, turning what began as a San Antonio centered pitch into a transatlantic legal problem.

Reporting on the case describes how the company behind the new Alpha5 model leaned heavily on digital renderings and engineering support to sell its vision, including a widely circulated digital rendering of the DeLorean Alpha5 that became the public face of the car. Those images, credited as Courtesy material, helped fuel excitement around the project, but they also depended on extensive design work that an Italian partner now says was never fully compensated. The $4.6 million figure reflects not only unpaid invoices, but also the cost of chasing those debts across jurisdictions once the relationship soured.

Italdesign’s unpaid work and the push to enforce an award

At the center of the dispute is Italdesign, the Italian studio that has long been associated with high profile automotive projects and that was brought in to shape the Alpha5. Italdesign provided design and engineering services that turned the Alpha5 from a loose idea into a concrete product plan, only to later claim that DeLorean failed to honor the financial terms of that work. Earlier this year, the company secured an arbitral award that found DeLorean liable for millions, a decision that now underpins the $4.6 million judgment figure.

Legal filings describe Italdesign as an Italian company that provided design and engineering services for the Alpha5 and then went to arbitration after payments stalled. In that proceeding, the tribunal ordered DeLorean to pay a multimillion dollar sum, including a principal award of roughly $4.2 million plus additional amounts that brought the total exposure closer to the $4.6 million now at issue. Italdesign has since moved to have that award recognized and enforced, arguing that DeLorean has not voluntarily paid the remaining balance and that court intervention is necessary to collect.

San Antonio ambitions, Humble liabilities, and a split corporate identity

Complicating the picture is the way DeLorean’s business is carved up between different entities and cities. The Alpha5 pitch was closely associated with a San Antonio based operation that presented itself as the future of the brand, while a separate corporate vehicle in Humble, Texas, holds the historic DeLorean Motor Co. name. That split has become central to the legal strategy on both sides, as creditors try to identify which entity is actually responsible for the debts tied to the Alpha5 project.

One lawsuit seeking to collect on the Alpha5 related obligations targets DeLorean Motor Co. of Humble but explicitly does not name DeLorean Reimagined LLC, the San Antonio company behind the new Alpha5 model. The complaint describes how the lawsuit seeks payment from Motor Co in Humble while leaving Reimagined LLC, based in San Antonio, outside the caption. That choice reflects both the complex corporate structure and a tactical calculation about where assets might be found, and it raises the prospect that some parts of the DeLorean ecosystem could try to distance themselves from the Alpha5 liabilities even as they benefited from the project’s publicity.

Promises of “big checks” and a trail of unpaid debts

The narrative that emerges from the court record is not just about corporate diagrams, but about specific promises that were made and then, according to Italdesign, broken. After Italdesign pressed for payment, DeLorean representatives responded with assurances that substantial funds were on the way. Those assurances bought time, but they did not resolve the underlying invoices, and they now feature prominently in the story of how a high profile partnership deteriorated into litigation.

In one telling detail, reporting describes how a DeLorean figure told Italdesign that “big checks” were coming only a week after earlier communications about the overdue bills. They apparently never did, according to accounts that say the debts remained outstanding despite those reassurances. Italdesign ultimately took the motor company to arbitration to recover what it said it was owed, and the resulting award, now translated into a judgment, reflects the arbitrators’ conclusion that the unpaid work justified a multimillion dollar recovery.

A brand already shadowed by past legal fights

The Alpha5 judgment does not exist in a vacuum. DeLorean’s modern revival has already been tested in court, including a high profile intellectual property case that targeted the San Antonio leadership team. That earlier suit, filed by a rival automaker, alleged that key DeLorean executives had taken proprietary information from a previous employer and used it to jump start the new venture, casting a cloud over the company’s origin story even before the Alpha5 bills came due.

The complaint in that case claimed that four individuals who had previously worked at a California based company called Karma misused trade secrets when they helped establish the San Antonio DeLorean operation. According to the allegations, the four former California Karma employees carried over confidential know how that should have remained with their old employer. A judge ultimately dismissed that intellectual property suit, removing one legal overhang, but the episode underscored how contentious the race to build a new electric vehicle brand has become and how closely competitors watch one another’s moves.

More from Morning Overview