**The Rise and Fall of 20th Century Motor Car Corporation**

Murder in a corporate office, financial crimes and possible mob ties. A CEO with a surprising past. Now, even though this story takes place almost half a century ago, people keep coming back to it. But of all the failed auto startups, why are people still captivated by the story of the 20th Century Motor Car Corporation?

Patience, geez, I'm gonna tell you. This is everything you need to know to get up to speed on the Dale.

I love big wheels and a powerful engine. Guess you could say I'm a real car girl, but not just any car girl, an invisible car girl. Hi, I'm Mrs. Transparent, and when I need to take care of my car, there's nothing I love more than transparency. That's why I use The Zebra. The Zebra is a car insurance comparison site and like me, they're fully transparent. You can shop for car insurance without ever dealing with spam calls or marketing texts from random numbers because they don't want your data. Zebra doesn't just pick their favorite insurance companies, you're their favorite. And they could save you over $400 a year on car insurance. So the choice is, unlike me, easy to see. Go to thezebra.com/uptospeed, to compare quotes for free and find your perfect policy today.

The graveyard of fallen auto startups is far from empty. All struggled with financing and delivery dates. Even tech giants like Dyson, the guys who make the best vacuum and Apple, the guys who make the best watch, have dipped their toes in the water only to realize that making cars is a tricky business. Tesla and maybe Rivian, we'll have to see, is kind of the exception that proves the rule. But even after a decade of success, their cars are plagued with quality control and reliability issues.

In the seventies, one company found out just how hard it really was and became a notorious scandal. Because of the gas crisis, Americans were ready to trade those underpowered, living room-sized luxury mobiles for smaller, fuel-efficient, economy cars. We've talked about this a million times on this channel. We made a video about it, check it out.

But no one was really making them in the U.S. yet, so there was a wide open market for anyone daring enough to go up against the big three. Which brings us to Dale Clift, with two F's. Now Clift was an inventor, an avid motorcyclist in Los Angeles. A few years before the crisis, Clift, with two F's, built the commuter cycle.

An inexpensive, motorcycle-based, all-weather vehicle for cruising around SoCal because you know we have so much weather. It was made of simple metal tubing, covered in red naugahyde, a fake leather that covers hot tubs mostly and it was powered by a 305CC Honda Super Hawk motorcycle that was welded directly into the frame. Yes, I said motorcycle, not motorcycle engine. It used the whole bike. Basically, he built a roof.

Even though Dale saw his vinyl tricycle as a minor engineering success, he wasn't trying to be no business daddy and we wouldn't still be talking about it today if it weren't for someone with let's just say, grander ambitions. Enter Geraldine Elizabeth Carmichael.

Now, Liz was an associate at the United States Marketing Institute. One of those firms that promised to connect wacky inventors with business daddies. You got an invention? We'll find you a daddy. Cha ching, cha ching, cha ching. Liz was on the hunt for an ultra-efficient commuter car, so when Clift's eye-catching prototype got someone in a restaurant to connect with her, she was stoked.

Liz met Clift and offered him $1,001 for his invention, as well as a promise of 3 million in royalties once the car went to market. She also named the car Dale, in his honor. Such a kind, thoughtful woman and such a good name for a car.

Turns out Clift would never get that money. So who was this lady? Here's her side of the story. According to Liz, she built her first car at 18 years old, then she got a degree in mechanical engineering. She also casually married a NASA structural engineer whose death left her as a single mother of five.

Now you know why the story of 20th Century Motor Car Corporation is still so captivating today. The rise and fall of this company is a wild ride full of twists and turns, and it's a reminder that even the most well-intentioned ideas can sometimes go awry.

WEBVTTKind: captionsLanguage: en- Murder in a corporate office,financial crimes and possible mob ties.A CEO with a surprising past.Now, even though this story takes placealmost half a century ago,people keep coming back to it.But of all the failed auto startups,why are people stillcaptivated by the storyof the 20th Century Motor Car Corporation?Patience, geez, I'm gonna tell you.This is everything you need to knowto get up to speed on the Dale.(upbeat music)-Thank you to The Zebrafor sponsoring today's video.I love big wheels and a powerful engine.Guess you could say I'm a real car girl,but not just any car girl,an invisible car girl.Hi, I'm Mrs. Transparentand when I need to take care of my car,there's nothing I lovemore than transparency.That's why I use The Zebra.The Zebra is a carinsurance comparison siteand like me, they're fully transparent.You can shop for car insurancewithout ever dealing withspam calls or marketing textsfrom random numbers becausethey don't want your data.Zebra, doesn't just pick theirfavorite insurance companies,you're their favorite.And they could save you over$400 a year on car insurance.So the choice is, unlike me, easy to see.Go to thezebra.com/uptospeed,to compare quotes for freeand find your perfect policy today.(hood slamming)- Ah, Honey, my finger was there.- Oh, I'm so sorry babe, I didn't see it.- Of course you didn't see it.- You know, I'm sensitive about my vision.- DeLorean, Tucker, Vector.I hardly even knew her.The graveyard of fallen autostartups is far from empty.All struggled with financingand delivery dates.Even tech giants like Dyson,the guys who make the best vacuumand Apple, the guyswho make the best watchhave dipped their toes in the wateronly to realize that makingcars is a tricky business.Tesla and maybe Rivian, we'll have to see,is kind of the exceptionthat proves the rule.But even after a decade of success,their cars are plaguedwith quality controland reliability issues.And in the seventies,one company found outjust how hard it really wasand became a notorious scandal.Because of the gas crisis,Americans were readyto trade those underpowered,living room sized,luxury mobiles for smaller,fuel efficient, economy cars.We've talked about this amillion times on this channel.We made a video about it, check it out.But no one was reallymaking them in the U.S. yet,so there was a wide open marketfor anyone daring enough togo up against the big three.Which brings us to DaleClifft, with two F's.Now Clifft was an inventor,an avid motorcyclistin Los Angeles.A few years before the crisis,Clifft, with two F's,built the commuter cycle.An inexpensive, motorcyclebased, all weather vehiclefor cruising around SoCalbecause you know we have so much weather.It was made of simple metal tubing,covered in red naugahyde, a fake leather,that covers hot tubs mostlyand it was powered by a 305CCHonda Super Hawk motorcyclethat was welded directly into the frame.Yes, I said motorcycle,not motorcycle engine.It used the whole bike.Basically, he built a roof.Now, even though Dalesaw his vinyl tricycleas a minor engineering success,he wasn't trying to be no business daddyand we wouldn't still betalking about it todayif it weren't for someonewith let's just say,grander ambitions.Enter Geraldine Elizabeth Carmichael.Now, Liz was an associateat the United States Marketing Institute.One of those firms that promisedto connect wacky inventorswith business daddies.You got an invention?We'll find you a daddy.Cha ching, cha ching, cha ching.Liz was on the hunt for anultra efficient commuter car,so when Clifft's eye-catching prototypegot someone in a restaurantto connect with her,she was stoked.Liz met clifft and offeredhim $1,001 for his invention,as well as a promise of3 million in royaltiesonce the car went to market.She also named the car Dale, in his honor.Such a kind, thoughtful womanand such a good name for a car.Turns out clifft wouldnever get that money.So who was this lady?Here's her side of the story.According to Liz, she builther first car at 18 years old,then she got a degree inmechanical engineering.She also, casually marrieda NASA structural engineerwhose death left her asingle mother of five.Now you couldn't engineera better origin storyfor the women's lib movement.All right, tack that onto the factthat Liz wanted to quote rulethe auto industry like a queenand you got yourself star, pal.Liz was also a libertarianand named her new car companythe 20th Century Motor Car Corporation,after a business in ArnRand's "Atlas Shrugged",a great movie starring Sean Hannity.As a staunch individualist,Liz was unapologeticabout her motivationfor going eco-friendly.Sure creating a fuel efficientcar was great and all,but she was actually looking to capitalizeon consumers fears about the gas crisis.Liz told the world that the Dalewould have an 850CC motorcycle engine,capable of getting 70 miles per gallon.All right, just for context,other cars at the timeaveraged 11.9 miles to the gallon.People freaked and a deposit of $500,the prototype got awhole bunch of attention.Like a bulldog wearing Oakley's attention.Public wasn't even turned offby the Dale's banana on wheels appearanceor its unconventional three wheel layout,which reduced the car'sweight and friction.Folks had a Vietnam hangoverand the gas crisis got'em scared.They were ready to feel some optimism.70 miles per gallon, fill her up baby!But here's the thing,people weren't gonna plunk down depositsfor a motorcycle witha hot tub roof on it.This ain't Mad Max,Pleatherdome, All right?So even though the efficiency claimsweren't completely unrealistic,there was definitely an asterisk to them.With a small displacementmotorcycle engineand a frills free body, reducingweight, wherever possible,70 miles to the gallonwas theoretically doable.But the line between motivatedentrepreneur like him,and snake oil salesmanlike him can start to bluronce you begin drinking your own oil.Liz was so certain ofthe threat that she posedto the Detroit big threethat workers at the 20thCentury's California officesremember security being nuts.Like 2007 iPhone development lab nutsAnd there were a lot ofbodyguards, big dudesin pin striped suits, brass knuckles.There were also fat stacks of cashthat appeared on Liz's desk every Friday.Briefcases full of it.In fact, with 357 magnums next to'em.Ring, ring.Hello?Good fellas, we got amob situation over here.But if private doubts were formingwithin the company's rakes,Liz's success only seemedto be picking up steamin the national consciousness.The Dale was getting evermore press attention,thanks in no small part toLiz's larger than life personaand canny ability todrive the media narrative.And she was honing her origin story.In the age of the feminist movement,the tale of one woman going up againstthe big three of Detroit wasa layup for magazine coversand TV interviews.Liz also got wilder with her claimsabout the Dale's selling points.She said it's body ofrocket structural resin,I think she made thatterm up, called Rigidex,definitely made that one up,was nine times stronger than steeland would never dent or shatter.But Liz was so sure about its miraculousplastic construction that sheeven took her own engineersto a shooting demonstration.She fired a revolver at a Rigidex cup(gun firing)and it (beep) shattered, dude.It blew up, blew up like what happenswhen you shoot a plasticcup with a revolver.And that was the last timethat a demo ever went poorly.- Oh, man!- Regardless of this,the company felt thateverything was set to go.Spirits were high.People were firing their357 magnums into the airleft and right, likeso many Yosemite Sams!The Dale was set to startrolling off the assembly linein June 1975, but therewas one little problem.The car did not exist.The dream that Liz was sellingrequired parts fabricated from scratchand the inexperienced teamstill hadn't delivered anythingresembling the car that was being sold.They didn't actually put together a Dalethat could drive under its own power,much less anything that was readyto start being manufactured at scale.The hype around 20thCentury Motor Corporationand the personality at its center,triggered the spidey sensesof a couple reporters at KABC,who thought something wasfishy about this whole deal.So they arranged for an interview with Lizand when they arrived atthe corporate headquartersthey noticed an officerfrom the LA District Attorney's office,who was himself, snooping around.Although, when I thinka detective does it,it's called investigating.The investigator, told themto keep an eye on this place, Jack.Now the ABC reporters weren't car experts,so they came up with a plan.They paid a retired carengineer a hundred bucksto take a tour of the factory with them.He pretended to be part of the crew.Afterwards, he told reporters on air,that everything going oninside that Dale garagewas not lining up with Liz's claimsbut did this affect pre-orders?Sure did, but not in theway that you'd expect.The publicity had theexact opposite effect.One of the reporters believedsales increased 200%.Now here's a little business, 101 for you,legally, if you're taking deposits on carsor anything that doesn't exist,you have to put that moneyinto a special bank account,think of it like a piggy bank,until the cars can be built.Liz wasn't having any ofthat nanny state mumbo jumbo.Laws my ass, suck my butt.She needed those fat stacksto keep the lights on, make payroll.So while the ABC report mightnot have slowed the brakeson the Dale hype, it did put pressureon the state governmentto take a closer lookat the company's shadyinvestment practices.In the fall of 1974, acease and desist orderfrom California demandedthe 20th Century Motor CarCompany stop taking pre-orders.Liz blamed the auto industryand their friends in the government.She claimed that there had been acidin the plastic vats.Plans stolen, fricking locks busted,fires started, false reportsturned into various regulatory bodiesand the company continuedto collect depositson the unmade cars in direct violationof the state injunction.ABC captured this on camerain an embarrassing follow-up broadcastthat shut the offices down for the day.The conflict between ABCand 20th Century Motorswas only heating up.One of the reporters received a cash bribethat he believed came from Liz herself.And it didn't take long forhim to poke around and realizethat the Universities Liz claimedto have gotten degrees from,had surprisingly never heard of her.The walls were closing inand 20th Century Motorsbegan to run into money problems.Paycheck started to bounce,but a lot of the peopleinside the Dale projectwere true believers led along by Liz,who must have maxed out her charisma statsin the character creation screen.She'd gotten her team to buyinto the dream of the Daleand a lot of them weren't readyto turn on her, quite yet.Besides she had one moretrick up her sleeve.A thing I like to call Japanese investors.Everything hinged on this.As the Japanese economy was heating upand taking over the automotive sector,a 30 million cash infusionwould be the only thingthat could finally restorethe company's credibilityand put it back on the path to success.But in order to pull it off,the Dale was gonna haveto finally prove itselfon the hardest place fora car to prove itself,the road.Liz ordered her teamto get the car running,even though it was unfinished.After a sleepless crunch periodthe development team broughtthe working prototypeto a parking lot whereLiz and her workers metwith foreign businessmenfor a demonstration.And at the moment oftruth, the car started.It worked but therewas one little problem,the test driver eager toresolve lingering uncertaintyabout the three wheel design stability,juked hard into a turn that briefly causedthe Dale to tip up on its sideand scrape its body against the asphalt.Not a great look and enough to scare offthe would-be investors.Liz was irate.She called the test anabortion on three wheels.She's got a way with words.Now, other tadpolestyle, three wheeled carshave proven stable over the years.So what went wrong?According to at leastone of the engineers,this kind of minor flaw couldbe worked out in testing,but sadly, the Dale wasoutta time and outta money.Oh, and there's one other little hiccup.Totally normal stuff for any businessgetting up on it's feet.A guy got shot in the head,three times inside their office.The main suspect was 20thCentury employee, Jack Oliver,who had previouslyserved time with salesmanWilliam Miller in prison.According to Oliver's son,Miller had come up with a brilliant planto kill an investigatorfrom the securitiesand exchange commission.Oliver tried to stop him,they argued about it.Miller turned the gun on Oliver,bada bing, bada boom, self defense.Good fellas much?Turns out, the kind ofcompany Liz was keepingonly brought further scrutiny.But that didn't stop theDale mock-up from appearingas a prize on The Pice is Right.Did the prize bookeron that show just likenot know about the guywith three bullet holesin his head at this point?Man, you could get away witha lot before the internet.Not that it did anything to stop the heat.Soon after Liz Carmichael and nine other20th Century employees wereindicted on charges of fraud.As investigators had come to believethe Dale would never be anything morethan an empty fiberglass shell.When she learned of the charges,Liz and her family went on the runand this is when the storycaught national attentionfor an entirely different reason.Now police got a warrantto enter Liz's home,where they found wigs and padded brasand what a police report at the time,referred to as a deviceused by female impersonatorsto disguise their sex.Now this led authorities to discoverthat Liz was a transgender womanwho had been wanted oncounterfeiting chargesdating back to 1961,when she still identifiedpublicly as a man.Before that, she had been fired from a jobselling vacuum cleanersfor pocketing customers down payments.Sound familiar?In April of 1975, a few monthsafter going on the lamb,Elizabeth was caughtin Florida, of course.She was sent back to LA toface charges of grand theft,corporate securitiesfraud, and conspiracy.Though it had nothingto do with the chargesthat Liz faced, news coverage fixatedon the status of her genderconfirmation surgery.And there was a lot of uncertaintyas to whether in the eyes of the law,she was a man or a woman.While awaiting trial, she was housedat the LA County Men's Jail,where she was unfortunatelyand very predictably beatenup a lot by other inmates.She had to petition the courtfor the right to be addressedand tried as a womanat her trial, which she was granted.Now this is a very high profile,landmark case, at the time.To many people living in1970's American society,Liz Carmichael's genderidentity was in and of itselfevidence of her guilt.And I hate to say it, I feellike it would be the same now.Not only did it mark heras someone living on thefringes of proper society,but to them, the shiftingnature of her public identitysuggested an ulterior motive.Dick Carlson, one of the ABCreporters who exposed her fraudfocused his follow upstories on her genderspeculating She'd been living as a woman,as a means to both escapethe law and get publicity.In a previous reportingjob, Carlson had outeda San Diego transgendertennis player and his son,Tucker Carlson, would go on tocontinue the family businessof anti-trans crusading and generally,just being a giant piece of (beep).(beep), Tucker Carlson.But to hear Liz's familyand friends tell it,her transition was a fact of who she was.She had lived as G. Elizabeth Carmichaelfor a decade before the Dalewas even a twinkle in her eyeand it's not like she revertedto her previous identitywhen the cops were looking for her.But this was a hard thingto convince the public of in the 1970's,given her criminal pastand her lies about her qualificationsand the entire operation she was runningat 20th Century Motor Corp.The whole thing was a mess admittedly.At her trial, Liz choseto represent herself,which is, you know, alwaysa really good choice.Do you want a lawyer?No way.I know best.She called herself a pioneerwho dared to go against Detroit.And though the jury deliberatedfor a lengthy 16 days,eventually Liz was foundguilty on 26 counts.Her customers and investorshad been defraudedon an estimated one to $3 million.Liz was sentenced to twoto 20 years in men's prisonand ordered to pay $30,000 in restitutionbut she wasn't gonna goquietly into the night.No boy.After running out of her appeals in 1980,she escaped while out on bail.Now the story went quietfor a long time after that.The gas crisis and the tale of the Dalefaded into auto history.That is until 1989, when anUnsolved Mysteries episodeled to the capture ofG Elizabeth Carmichael,who was going by the name ofCatherine Elizabeth Johnson.Liz was found operating aroadside flower selling businessin, I swear, I'm not makingthis up, Dale, Texas.Liz served two years in prisonand died of cancer in 2004.One of the Dale prototypes is now housedin the Peterson AutoMuseum in Los Angeles,along with our trucks.And its story got renewed attentionwhen HBO released a four part, docu-seriesabout it last year.It looked at the details of the case,but also Liz's complicated legacyas a part of transgender history.The story of the Dale is complicated,surprising and tragic forbasically everyone involved.Sometimes the only thingseparating a get rich quick schemefrom entrepreneurial geniusis how successful it all turns out.- HI CAR isofficially back from the dead,so naturally we have brandnew BoostCreeps shirtsto welcome it back.BoostCreeps can be scary, I know,but they're perfectly harmless, I promise.So go get your newBoostCreeps shirts todayat Donutmedia.com.- Thank you guys so muchfor watching this video.I think this is a reallyinteresting story.I really encourage you tocheck out the HBO seriesand check out the pastpodcast that we recordedabout this very complicatedand super interesting,and just like, such a great character.Hit that subscribe buttonmake sure you don't miss anything.You wanna get some donut merch,I'm really, really excitedabout our merch program right now.We're dropping a new thing every week.My best friend in theworld, Andy, makes it all.So go to donutmedia.comto get some of that.Thanks to Nick and Gioand Christina and Joefor helping me make this video.I love you.