Motors Corp, the No 1 US auto maker, said it could take
a $1 billion charge in the second quarter by restating
accounts related to its bankrupt auto parts business
US Securities and Exchange Commission has asked GM to
show documents related to the accounting used in its
latest annual report, GM spokeswoman Renee Rashid-Merem
said the regulators are reviewing its accounting for
commodity and foreign-exchange contracts.
an SEC filing, GM said its exposure to bankrupt auto
parts maker Delphi Corp. was probably $7 billion while
it had accounted for $6 billion.
have taken a $6 billion charge to date," Rashid-Merem
said. "In order to hit that $7 billion, we would
potentially take an additional $1 billion charge in
the second quarter."
said it may also have to restate some results after
the SEC reviews accounting at the former General Motors
Acceptance Corp. finance unit.
automaker earlier this month estimated an initial payment
of $400 million and a range of $100 million to $200
million a year as part of a bailout of Delphi. GM spun
off the parts-making unit in 1999.
costs of some former GM workers at Delphi may total
$7 billion, up from an earlier estimated range of $6
billion to $7.5 billion, GM said in the filing.
SEC request extends GM''s two-year struggle to clean
up its accounting and end restatements. Last year, the
results dating back to 2000 and reorganised its accounting
office by combining the jobs of controller and chief
in March delayed its 2006 annual report to restate results
from 2002 to 2005. The SEC inquiry relates to the accounting
in that report.