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 brought in Dan, an attorney and associate of Gerry, to help shift the balance in his favor. In June 1990, vector hired a vice president; this V.P did not agree with Gerry’s management style and reported it to the board. Dan Harnett even began to see the malevolent behaviors of Gerry, and called for his removal. The other board members did not agree to this because there was no one to take his place and Gerry was allowed to be a bad manager, according to his employment contract, he just could not do anything illegal. Instead the board decided to require Gerry to submit formal expense reports in order to get reimbursed for expenses. Dan later resigned from the board and was replaced by George, another associate of Gerry. June 1992, 2 million dollars was given to Vector by Setiwon Djody, an investor from Indonesia. In the purchase agreement Djody had the right to bring in another board member to protect his interests; thus Baduraman Dorpi was appointed to the board. Barry left the board when Dorpi entered because Gerry said that Djody did not want the board to increase in size. Later they discovered this was not true. Djody did not want