USD 10.6 billion: General Motors Losses in 2005

USD 10.6 billion: General Motors Losses in 2005

World’s largest automotive company General Motors has reportedly raised their losses for last by around USD 2 billion. The figures now stand at an astounding USD 10.6 billion. These extra losses are due to charges related to factory job losses, its finance arm GMAC and the bankruptcy of former subsidiary Delphi Corp.

The company would also be delaying their filing of the annual report with securities regulators. This is because GM made some mistakes in accountancy related to GMAC. As a result, they would also be restating results from 2000 to 2004 due to ResCap.

Interestingly, these loss figures represent almost 85 percent of the current market value of General Motors, which has seen serious drop in their share price in the last couple of months. The company’s stock has lost more than half its value in the last year alone, which has been full of bad news for the company struggling to compete against the Japanese automobile companies.

General Motors has stated that they are expecting to file its annual report with the U.S. Securities and Exchange Commission within the next two weeks.