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 six months ended June 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

                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;
                53,639,599 shares outstanding as of June 30, 1998


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                     Vector Aeromotive Corporation
                        Condensed Balance Sheets
                             (Unaudited)

                                        June 30,            June 30,
                                          1998                1997

Assets
Current Assets
 Cash and cash equivalents             $      351         $     7,382
 Inventories                              543,837             556,612
 Prepaid Expenses                           2,251                  -
 Accounts and other receivables            67,066                  -
  Total current assets                    613,505             563,994

Property & Equipment                      101,124             115,952
Other Assets                                1,850               1,850

 Total assets                          $  716,479         $   681,796

Liabilities and Stockholders' Equity
Current Liabilities
 Accounts payable                      $  585,977         $   728,218
 Accrued expenses                         173,442             198,994
 Other payables                           357,191             315 138
 Loans payable to related parties              -              423,407
 Customer deposits                         50,000              25,000
  Total current liabilities             1,166,610           1,690,757

Long term liabilities
 Loans payable to related parties       1,589,301           1,199,130
 Notes payable                            250,000             250,000
  Total long term liabilities           1,839,301           1,449,130

  Total liabilities                     3,005,911           3,139,887

Stockholders' equity
 Common stock, par value $.01 per     $   536,395         $   536,395
  share, 600,000,000 shares authorized;
  issued and outstanding: 53,639,599
  in 1998 and 53,639,599 in 1997
 Capital in excess of par value        36,786,109          36,786,109
 Accumulated deficit                  (39,611,936)        (36,780,595)
  Total stockholders' equity           (2,289,433)         (2,458,091)

  Total liabilities and
  stockholders' equity                $   716,479         $   681,796


     See accompanying notes to unaudited condensed financial statements.

<PAGE>

                     Vector Aeromotive Corporation
                  Condensed Statements of Operations
                              (Unaudited)


                              Three Months Ended            Six Months Ended
                                 June 30,                      June 30,
                               1998        1997           1998         1997

Sales                         $ 152,300   $      -    $  443,903  $        -
Cost of sales                   125,349          -       326,687           -

 Gross profit (loss)             26,951          -       117,216           -

Costs and expenses
 Marketing                       31,342          -        34,131           -
 Race program                    (3,914)         -        (1,776)          -
 Research & Developemnt           8,484          -        16,880           -
 Quality & Warranty               5,000          -        15,000           -
 General and administrative      69,119     173,972      123,810      423,515
 Total costs and expenses       110,031     173 972      188,405      423,515

Operating profit (loss)         (83,080)   (173,972)     (71,189)    (423,515)
Other income (expense)
 Interest and other income       40,149          -        40,149           -
 Interest expense               (18,122)     (9,352)     (26,065)     (18,705)
 Other expense                   (3,440)         -        (3,440)          -

Net profit (loss)               (64,493)   (183,325)     (60,545)    (442,220)


Net profit (loss) per share      ($0.00)     ($0.00)      ($0.00)      ($0.01)

Weighted average common shares
 outstanding                  53,639,599 53,639,599    53,639,599  53,639,599


    See accompanying notes to unaudited condensed financial statements.

<PAGE>

                     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   $(39,551,392) $(2,228,887)

Net Profit (loss)                                       (60,545)     (60,545)

Balance,
June 30, 1998     53,639,599  $536,396  $36,786,109   $(39,611,936) $(2,289,433)



    See accompanying notes to unaudited condensed financial statements.

<PAGE>

                     Vector Aeromotive Corporation
                  Condensed Statements of Operations
                              (Unaudited)


                                         Six Months          Six Months
                                            Ended               Ended
                                        June 30, 1998       June 30, 1997

Cash flows from operating activities:
 Net profit (loss)                       $   (60,545)         $ (442,220)
 Adjustments to reconcile net profit
 (loss) to net cash used in operating
 activities
 Depreciation and amortization                11,026                8,046
(Increase) decrease in
 Accounts receivable                         (67,076)             155,000
 Inventories                                (104,180)                  -
 Prepaid expenses and other assets            (2,251)              15,628
Increase (decrease) in
 Accounts payable                            (91,928)              18,007
 Accrued expenses                            (40,241)              (1,020)
 Other payables                               49,165               13,646
 Customer deposits                            25,000                   -

Net cash from operating activities          (281,030)            (232,913)

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:
 Proceeds from issuance of common
  stock and warrants                              -                    -
 Proceeds from exercise of warrants               -                    -
 Repayment of loan payable to
  Related party                                                        -
 Loan payable American Dream Int'l           285,627              206,430

Net cash from financing activities           285,627              206,430

Net increase (decrease) in cash and
 cash equivalents                                351              (26,483)
Cash and cash equivalents, beginning
 of period                                        -                33,864
Cash and cash equivalents, end of
 period                                          351                7,381


    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 pri nciples for inte
rim financial information and with the instructions t o Form 10-Q and Article 10
of the Regulation S- X. Accordi ngly, they do not include all of the information
and foo  tnot es  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 six months ended June
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:

                                     June 30,            June 30,
                                       1998                1997

          Raw Material             $ 219,622           $ 223,666

          Work in progress           221,887              48,666

          Finished Goods             102,328             284,280

               Total               $ 543,837           $ 556,612

3.   Payables to Related Parties

     As of June 30,  1998,  the Company  owed a total of  $1,589,301  to related
     parties:
         Automobili Lamborghini S.p.A.           $424,123
         Automobili Lamborghini U.S.A., Inc.      568,577
         American Dream International Limited     596,601

4.   Notes Payable to Unrelated Parties

         As of June 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 June 30, 1998, the Company had cash and cash equivalents
of $351,  compared  to $-0- at  December  31,  1997;  however,  the  Company had
accounts  receivable of $67,066,  compared to $-0- at 1997 year end. The Company
sold one M-12  automobile,  which  generated  cash flow  during  the  quarter of
$160,000.  The sale of the automobile also resulted in an additional  short-term
tax liability of $7,700.  Finally the Company  increased the balance of its loan
from  American  Dream in the second  quarter from  $404,896 at March 31, 1998 to
$596,601.

     The amount of Company's liabilities still exceeds its assets by $2,289,433.
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.


Results of Operations

     The Company had revenues for the quarter  ended June 30, 1998, of $160,000,
which resulted from the sale of one M-12 automobile.  After expenses  associated
directly with the production of the automobile and general operating expenses of
$110,031,  the Company had a net loss of  $64,493.  This  compares to a $183,325
loss for the same  period  in 1997  during  which  time the  Company  was not in
production.  For the period ended June 30,  1998,  the Company had a net loss of
$60,545  compared to a net loss of $442,220  loss for the  comparable  period of
1997.  In spite of the second  quarter  loss,  the  management of the Company is
encouraged by the  completion of two M-12  automobiles  one of which was sold in
the second quarter, the other sold in the third quarter.



<PAGE>

                           PART 2 - OTHER INFORMATION


ITEM 6   EXHIBITS AND REPORTS ON FORM 8-K

     Exhibit 27 attached


<PAGE>






                                   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: September 21, 1998      By: /s/ Timothy J Enright
                                  Timothy J Enright,
                                  President


Date: September 21, 1998      By: /s/ Thomas Hallquest
                                  Thomas Hallquest
                                  Chief Financial Officer