FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


(Mark One)
[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

                  For the nine months ended September 30, 1998

                                       OR

[ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] for the
transition period from

                                       to

Commission file number 0-17303


                          VECTOR AEROMOTIVE CORPORATION

             (Exact name of registrant as specified in its charter)


          NEVADA                                   33-0254334
(State or other jurisdiction of                 (I.R.S. Employer
  incorporation or organization)             Identification Number)


                                975 MARTIN AVENUE
                        GREEN COVE SPRINGS, FLORIDA 32043

          (Address of principal executive offices, including Zip Code)

               Registrant's telephone number, including area code

                                 (904) 529-0092

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes          No   X

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                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the  registrant  has filed all documents and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.

Yes ______   No ______

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date.

                     Common Stock, $.01 par value per share;
             53,609,387 shares outstanding as of September 30, 1998

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                          Vector Aeromotive Corporation
                            Condensed Balance Sheets
                                   (Unaudited)

                                      September 30,       December 31,
                                          1998                1997

Assets
Current Assets
 Cash and cash equivalents             $      606         $       783
 Inventories                              536,630           1,409,917
 Prepaid Expenses                           1,566               3,620
 Accounts and other receivables            61,566              14,745
  Total current assets                    600,369           1,429,066

Property & Equipment                       93,111             768,688
Other Assets                                1,850              85,744

 Total assets                          $  695,330         $ 2,283,498

Liabilities and Stockholders' Equity
Current Liabilities
 Accounts payable                      $  553,843         $ 1,210,519
 Accrued expenses                         182,605             257,446
 Other payables                           377,647                  -
 Loans payable to related parties              -              487,024
 Customer deposits                         25,000              25,000
  Total current liabilities             1,139,095           2,189,988

Long term liabilities
 Loans payable to related parties       1,621,836                  -
 Notes payable                            250,000                  -
  Total long term liabilities           1,871,836                  -

  Total liabilities                     3,010,932           2,189,988

Stockholders' equity
 Common stock, par value $.01 per     $   536,395         $   536,395
  share, 600,000,000 shares authorized;
  issued and outstanding: 53,609,387
  in 1998 and 53,609,387 in 1997
 Capital in excess of par value        36,786,109          36,786,109
 Accumulated deficit                  (39,638,106)        (37,228,994)
  Total stockholders' equity           (2,315,602)             93,510

  Total liabilities and
  stockholders' equity                $   695,330         $ 2,283,498

    See accompanying notes to unaudited condensed financial statements.

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                          Vector Aeromotive Corporation
                       Condensed Statements of Operations
                                   (Unaudited)


                                 Three Months Ended       Nine Months Ended
                                    September 30,            September 30,
                                  1998        1997        1998         1997

Sales                         $ 304,600   $ 118,500  $   748,503  $   118,500
Cost of sales                   226,520      84,160      469,762       84,160

 Gross profit (loss)             78,080      34,340      278,741       34,340

Costs and expenses
 Manufacturing overhead          50,585          -       147,254           -
 General and administrative      65,981     257,232      223,922      680,747
 Research and development           936          -        18,177           -
 Total costs and expenses       117,503     257,232      389,353      680,747

Operating profit (loss)         (39,423)   (222,892)    (110,612)    (646,407)
Other income (expense)
 Interest and other income       23,051     500,000       63,200      500,000
 Interest expense                (5,056)    (12,398)     (31,121)     (31,102)
 Legal settlements               (4,741)                  (8,181)

Net profit (loss)               (26,169)    264,710      (86,715)    (177,509)


Net profit (loss) per share    ($0.0005)   ($0.0049)    ($0.0016)    ($0.0034)

Weighted average common shares
 outstanding                 53,609,387  53,609,387   53,609,387   52,559,514

    See accompanying notes to unaudited condensed financial statements.

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                          Vector Aeromotive Corporation
                   Condensed Statement of Shareholders' Equity
                                   (Unaudited)


                      Common Stock   Capital in Excess  Accumulated
                    Shares     Amount   Of Par Value     Deficit     Total

Balance,
December 31, 1997 53,639,599  $536,396  $36,786,109   $(39,551,391) $(2,228,886)

Net Profit (loss)                                          (86,715)     (86,715)

Balance,
Sept 30,1998      53,639,599  $536,396  $36,786,109   $(39,515,886) $(2,315,601)


    See accompanying notes to unaudited condensed financial statements.

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                          Vector Aeromotive Corporation
                       Condensed Statements of Cash Flows
                                   (Unaudited)


                                         Nine Months          Nine Months
                                            Ended               Ended
                                      September 30, 1998     September 30, 1997

Cash flows from operating activities:
 Net profit (loss)                       $   (86,715)         $ (177,510)
 Adjustments to reconcile net profit
 (loss) to net cash used in operating
 activities
 Depreciation and amortization                19,049               12,070
(Increase) decrease in
 Accounts receivable                         (61,566)             155,000
 Inventories                                 (96,993)              70,338
 Prepaid expenses and other assets             1,566               15,628
Increase (decrease) in
 Accounts payable                           (124,062)              (9,415)
 Accrued expenses                             41,400               13,185
 Other payables                               (2,857)             (14,557)
 Customer deposits                                -                    -

Net cash from operating activities          (313,310)              64,739

Cash flows used in investing activities:
 Acquisition of property and equipment        (4,246)                 -

Net cash used in investing activities         (4,246)                 -

Cash flows from financing activities:
 Repayment of loan payable to
  Related party                                   -              (423,407)
 Loan payable American Dream Int'l           318,162              324,789

Net cash from financing activities           318,162              (98,618)

Net increase (decrease) in cash and
 cash equivalents                                606              (33,879)
Cash and cash equivalents, beginning
 of period                                        -                33,864
Cash and cash equivalents, end of
 period                                          (14)                 (15)


    See accompanying notes to unaudited condensed financial statements.

<PAGE>


                          Vector Aeromotive Corporation
                          Notes to Financial Statements

1.   Basis of Presentation

     The  accompanying   unaudited  condensed  financial  statements  have  been
     prepared in accordance with generally  accepted  accounting  principles for
     interim  financial  information and with the  instructions to Form 10-Q and
     Article 10 of the Regulation S-X.  Accordingly,  they do not include all of
     the information  and footnotes  required by generally  accepted  accounting
     principles  for  complete  financial  statements  and  should  be  read  in
     conjunction with Notes to Financial  Statements  contained in the Company's
     Annual  Report on Form 10-K for the year ended  December 31,  1997.  In the
     opinion of management,  all  adjustments  (consisting  of normal  recurring
     accruals)  considered necessary for a fair presentation have been included.
     Operating  results for the nine  months  ended  September  30, 1998 are not
     necessarily  indicative  of the results  that may be expected  for the year
     ended December 31, 1998.

2.   Inventories

     The components of inventory consist of the following:

                                  September 30,       September 30,
                                        1998               1997

          Raw Material              $ 186,355            $ 224,388

          Work-in Progress            350,275               48,666

          Finished Goods                   -               213,220

               Total                $ 536,630           $  486,274

3.   Payables to Related Parties

     As of  September  30,  1998,  the  Company  owed a  total  of  $424,123  to
     Automobili  Lamborghini S.p.A.,  $568,577 to Automobili Lamborghini U.S.A.,
     Inc., and $629,136 to American Dream International Limited.

4.   Notes Payable to Unrelated Parties

     As of  September  30,  1998,  the Company had  borrowed a total of $250,000
     uncollateralized,  from an  unrelated  party  accruing  interest  at 9%. No
     principle or interest payments have been made.

<PAGE>

                         PART 1 - FINANCIAL INFORMATION

ITEM 2    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL           
          CONDITION AND RESULTS OF OPERATION

General

     In November, 1996, the Company ceased operations due to a lack of funds. At
year-end 1996, the Company had cash and cash  equivalents of $33,864 and current
liabilities  of  $2,902,824.  In 1997,  the Company  entered  into,  among other
agreements,  a Loan  Agreement  with American Dream  International,  Limited,  a
corporation organized in the Bahamas. Under the Loan Agreement cash is funded on
a discretionary basis only. The Company's Board of Directors and management also
changed at the time. The operating  philosophy currently in place at the Company
is  one  of  recommencing  operations  in a  controlled  manner  with  minimized
operating expenses and gradually resolving the burdens of past due liabilities.


Liquidity and Capital Resources

     At the  quarter  end  September  30,  1998,  the  Company had cash and cash
equivalents of $606, compared to $-0- at December 31, 1997; however, the Company
had  accounts  receivable  of $14,834,  compared  to $-0- at 1997 year end.  The
Company sold two M-12 automobiles,  which generated cash flow during the quarter
of  $320,000.  The  sale  of the  automobiles  also  resulted  in an  additional
short-term tax liability of $15,400.  Finally the Company  increased the balance
of its loan from  American  Dream in the third quarter from $596,601 at June 30,
1998 to $629,136.

     The amount of Company's liabilities still exceeds its assets by $2,315,602.
The  Company's  only source of capital at the present  time  remains a loan from
American  Dream,  which is provided on a  discretionary  basis.  There can be no
assurance  that  this  financing  source  will be  sufficient  to  provide  cash
necessary  for the Company to  recommence  production  in full,  to pay existing
commitments  such as rent or pay all or any significant  portion of the existing
creditors of the Company.  The Company  currently has no other  commitment  from
others to provide  additional  capital,  and there can be no assurance that such
funding will be available if or when  needed,  or if  available,  that its terms
will be favorable or acceptable to the Company.  Should the Company be unable to
obtain  additional  capital,  when and if needed.,  it could be forced to either
curtail operations or again cease business  activities  altogether.  The lack of
liquidity and capital  resources  continues to raise substantial doubt about the
Company's  ability  to  continue  as a going  concern.  At the  same  time,  the
Company's  sales of M12 automobiles and  participation  in nationally  televised
races offers potential for success for the Company's current plan of operations.

<PAGE>

Results of Operations

     The Company had  revenues for the quarter  ended  September  30,  1998,  of
$320,000,  which resulted from the sale of two M-12 automobiles.  After expenses
associated  directly with the production of the automobile and general operating
expenses of $117,503,  the Company had a net  operating  loss of $39,423 for the
quarter ended  September 30, 1998. This compares to a $222,892 loss for the same
period in 1997 during which time the Company was not in production. For the nine
months ended September 30, 1998, the Company had a net loss of $86,715  compared
to a net loss of $177,509  loss for the  comparable  period of 1997. In spite of
the third quarter loss,  the management of the Company is encouraged by the sale
of two  M-12  automobiles  and  the in  process  production  of  two  more  M-12
automobiles.



                     PART 2 - OTHER INFORMATION


ITEM 6   EXHIBITS AND REPORTS ON FORM 8-K

     Exhibit 27 attached


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                                   SIGNATURES

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.



                              VECTOR AEROMOTIVE CORPORATION


Date: December 31, 1998       By: /s/ Timothy J Enright
                                  Timothy J Enright,
                                  President


Date: December 31, 1998       By: /s/ Thomas Hallquest
                                  Thomas Hallquest
                                  Chief Financial Officer