Karma Automotive has recently undergone numerous structural changes. From installing a new president to redirecting assets towards a new lineup of high-end vehicles, in more ways than one. the Irvine-based automaker is escaping its rather sui generis history.
In 2020, Karma Automotive was keen on manufacturing a new line of products under the DeLorean insignia. However, before the product could undergo any further development, members of Karma's executive team left to pursue the project on their own.
The team created a new company called DeLorean Motors Reimagined, and it debuted the Alpha5 concept, a striking modernization of John DeLorean's 1980s gullwing door coupe. This is where things get sticky, though. Karma Automotive claimed that the executives left and took "information, materials, and templates," so it sued in court.
However, Joost DeVries, Karma's former VP of Sales and now DeLorean Motors Reimagined CEO, said that Karma gave the team the motion to produce the car independently due to the firm's financial struggles.
To say the least, the situation was messy. However, it wasn't to stay that way indefinitely. While not explicitly stated, the two parties have likely settled their disputes as Karma Automotive requested the presiding judge to dismiss the case against DeLorean.
Early this September, the involved judge approved Karma's request. In a statement to San Antonio Express News' Eric Killelea, DeLorean CEO Joost de Vries said, "I'm happy for Karma, and I'm happy for us."
From here on out, Karma Automotive and DeLorean Motors Reimagined are operating as normal. Both automakers have bold plans for the future. Karma is launching a new lineup of EVs, and DeLorean is set on becoming a publicly-traded company.