CATEGORY:   ORGANIZATION

ATTENTION:  PARTS MANAGER

SUBJECT:    DMC FREIGHT AND TRANSPORTATION POLICY


Freight Terms - FOB Irvine, California
                All transportation costs are prepaid by DMC and
                charged back as "service charge" on the applicable
                invoice.

Routing -       Unless specifically stated by the dealer when
                ordered, all parts orders will be shipped via
                the most efficient, least expensive mode to
                accommodate the dealer delivery requirements.
                Carriers will be determined by DMC Traffic
                Department unless otherwise specified.

Insurance -     All parts shipments will be covered by transit
                insurance at dealer net value.

Claims -        All transportation loss and damage claims are
                the responsibility of the dealer (see Steps for
                Effective Claim Recovery) with the exception of
                claims against United Parcel Service (UPS).

UPS Claims -    Claims against UPS are to be submitted to the
                DMC Traffic Department within seven days of
                delivery or after a reasonable length of time
                for delivery when lost.

                Loss -

                DMC Traffic Department will have the shipment
                traced via UPS and, if lost, credit the dealer
                at invoice cost.

                Damage -

                The dealer will notify the local UPS office,
                who will pick up the package, inspect and
                return it to DMC for settlement.  DMC will
                credit the dealer at invoice cost.


                                                              (Cont.)




              STEPS FOR EFFECTIVE CLAIM RECOVERY



1.  Inspect all deliveries, including UPS, and note any visible
    damage on carriers receipt under drivers surveillance.

2.  When possible, unpack merchandise immediately.  Concealed
    damage must be reported to the delivering carrier within
    15 days of delivery.  Follow up with written notification
    of intent to file claim.

3.  Notify carrier upon discovery of loss or damage and request
    inspection and claim forms.  Follow up with written notifi-
    cation.

4.  Compile supporting documentation for claim presentation.

    A.  Original Bill of Lading
    B.  Paid Freight Bill
    C.  Original Invoice
    D.  Carrier Delivery Receipt
    E.  Claim Notification
    F.  Carrier Inspection Report (if performed)

    Documents A and B are obtainable from the DMC Traffic
    Department.

5.  Claim with supporting documentation must be submitted to
    the carrier within 9 months of delivery for damage and
    after a reasonable length of time for delivery on loss,
    with the exception of Federal Express.  The requirements
    of Federal Express are written notification within 15
    days of delivery and the claim filed within 90 days after
    receipt of written notification.

6.  All damaged parts with packaging should remain available
    for inspection at all times up to the final disposition
    of the claim.


DE LOREAN MOTOR CO.
Parts Department



Leif R. Montin
National Parts Manager                              Issued 10/16/81