Vector Aeromotive Corporation Summary

1356 Words Jul 24th, 2014 6 Pages
Mayela Everts
Accounting 6302
Vector Aeromotive Corporation

Vector sold exotic sports cars and was the only US based manufacturer. Their major competition, Ferrari and Lamborghini, took up 75% of the market share. Gerry’s idea was to make a car based off of aerospace technology. They created the V8 twin turbo which was highly advanced and priced. After selling a total of 13 cars, 45 people were employed. Vector built two other models to increase sell volume and decrease losses. Vector’s Board of Directors composed of 3 individuals, Berry with a background in real estate; John, a financial consultant, and Vector’s CFO; and Gerry, the president of Vector. Berry and John grew to disagree with Gerry more often; therefore, Gerry
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Djody sent $220,000 to Vector according to this agreement. Then Gerry revoked the deal by claiming he was under the impression that his option would only be used as collateral for the loan and not transferred. Djodi conducted business based on trust and Gerry broke this trust for Vector. He would no longer invest in the company, but keep Dorpi on the board to protect his previous investments. In 1992 the company’s taxes were not paid in time which caused some debate about disclosures in the 10-K. Also, after hosting a babysitter it was imminent that Gerry was furnishing his own home with company expenses. They decided to call a meeting where Gerry was going to be formally asked to resign on March 22, 1993. If he declined he would be fired by the board. When the day of the meeting arrived Gerry Wiegert locked himself inside Vector headquarters. The Board of Directors consisted primarily of Gerry Wiegert, John Pope, and Barry Rosengrant. Gerry was the President, so it was typical for him to be a part of the board. John Pope was a financial consultant; therefore, he was adequate to be the financially literate person on the board. Barry was in real estate, but he was a consultant of Vector Car which gave him some knowledge of the company. Dan Harnett and George Fencl were also a part of the board for some point of time; they also had adequate knowledge to be capable additions to the board with their knowledge of law and

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