Accounting errors deepen GM concerns
£1.4bn error sees share price fall again
Beleaguered US car manufacturer General Motors is creating more Wall Street
jitters after disclosing fresh accounting errors and an additional $2bn (£1.4bn)
loss for 2005 on Friday.
The news sent shares falling 5% and, according to the Wall Street
Journal, prompted an unscheduled board of directors’ meeting.
It has further increased fears among analysts about the company’s long-term
future and again damaged its reputation with investors.
One analyst said the news would make investors ‘skitters’ and could also
complicate the company’s efforts to sell to sell a majority stake in GMAC to
raise cash and improve the credit rating of its finance arm.