Packard Motor Company
DeLorean's time at Chrysler lasted less than a year, ending when he was offered a US$14,000 salary at Packard Motor Company under supervision of noted engineer Forest McFarland. DeLorean quickly gained the attention of his new employer with an improvement to the Ultramatic automatic transmission, giving it an improved torque converter and dual drive ranges; it was launched as the "Twin-Ultramatic".[7]

Packard was experiencing financial difficulties when DeLorean joined, due to changes in the automobile consumer market. While Ford, General Motors and American Motors had begun producing affordable mainstream products, Packard, Ewing, and Marquette clung to their pre-WWII era notions of high-end, precisely engineered luxury cars. This exclusive philosophy was to take its toll on profitability. However, it proved to have a positive effect on DeLorean's attention to engineering detail, and after four years at Packard he became McFarland's successor as head of research and development.[8]

While still a profitable company, Packard suffered alongside other independents as it struggled to compete when Ford and General Motors engaged in a price war.[9] James Nance, President of Packard, decided to merge the company with Studebaker Corporation in 1954.[9] A subsequent proposed merger with American Motors Corporation never passed the discussion phase.[9] DeLorean considered keeping his job and moving to Studebaker headquarters in South Bend, Indiana, when he received a call from Oliver K. Kelley, vice president of engineering at General Motors, a man whom DeLorean greatly admired. Kelley called to offer DeLorean his choice of jobs in five divisions of GM.