While the Company excelled at marketing its business to customers and investors, Davis, like many other auto manufacturers at the time, encountered extreme difficulties with getting its vehicles through production. The company faced mounting tensions as dealerships and customers who ordered Divans waited through successive missed delivery deadlines while receiving no updates from the Company. By 1948, the Company was
bankrupt and began to wind down its operations. Workers and engineers cited unpaid funds, and lawsuits were threatened by investors and dealers. Former employees then filed suit for back pay, and the company was investigated on allegations of fraud. Soon after the Davis plant was shut down, Gary Davis was convicted on 20 of 28 counts of theft (he was acquitted on four counts of theft and four of fraud) and was sentenced to 8 months to two years of labor in a
work farm prison camp. Davis developed a variant for military use. The Model 494 was a
Jeep-like version of the Divan with an open body. Arrangements were ongoing with
the Pentagon to run tests at the
Aberdeen Proving Grounds in Maryland. Ultimately three 494s were built in less than a week, two of which were shipped to the Army for testing. The assets of Davis were sold for back taxes in May 1950. The remainder of the company now belongs to Wayne Miller who resides in Arizona. ==Delta Motor Car Company==