GM Revises 2005 Loss Upward

20 March 2006

General Motors' slide into the financial mire shows no sign of halting as the company announced a downward revision of its 2005 accounts.

The world's largest automaker by unit sales said the loss was $10.6 billion (€8.7bn; £6.03bn) for the year, $2bn more than initially reported because of charges associated with its restructuring, the bankruptcy of its former auto parts subsidiary Delphi and its finance arm GMAC.

In a statement, the Detroit-headquartered company also said it would delay filing its annual report with the US Securities and Exchange Commission due to an accounting issue regarding cashflow at ResCap, the residential mortgage subsidiary of GMAC.

GM, which has been slashing costs and cutting capacity as it faces the loss of US market share to Asian rivals, will also restate pre-tax income for financial years as far back as 2000, the statement said.

Data sourced from Financial Times Online; additional content by WARC staff