General Motors share hit as company reports massive losses

General Motors share hit as company reports massive losses

World’s largest automotive company General Motors recently reported that they lost $2 billion more last year than previously reported. The company also said that they needed some extra time to sort out accounting errors in the finance business it wants to sell.

This news has led to investors loosing their trust in the management of the company and the shares of the company took a beating in the stock exchange as they lost 5% in the market. This share price drop was good enough to knock off more than a half-billion dollars off its market value.

However, some market analysts claimed that the news also had a positive side as the company’s improved relations with United Auto Workers union would help them take Delphi out of bankruptcy and in the end improve its position in the market.

GM reported that they lost as much as $10.6 billion in 2005. This was $2 billion more than the earlier reported figures. The company also has delayed filing its annual report with the Securities and Exchange Commission for up to two weeks.