[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Thursday, 27 October 2005, 05:57 GMT 06:57 UK
GM accounts probed by regulators
GM production line worker
Regulators are checking the nuts and bolts of GM's accounts
General Motors (GM), the world's biggest carmaker, is having its accounts investigated by regulators.

The Securities and Exchange Commission (SEC) has issued a subpoena, and the firm said it was co-operating fully.

Regulators are looking into areas including how GM accounts for pension liabilities and transactions between itself and bankrupt supplier Delphi.

GM said subpoenas were also served on firms related to its finance division, General Motors Acceptance Corp (GMAC).

Not alone

The SEC already is investigating other firms, including another carmaker, and is trying to improve its understanding of how companies book pension liabilities.

Analysts said the concern is that firms may inflate or cut their liabilities in order to boot profits or cut losses.

On top of that is the Chapter 11 bankruptcy filing by Delphi, which has muddied the waters regarding the amount of money GM needs to stump up to cover retirement costs.

Delphi was spun off from GM in 1999, and the carmaker underwrote pension costs for many of the firms' workers.

Since Delphi has asked for protection from its creditors, GM has said that it may be liable for as much as $12bn (6.7bn) in pension costs for the auto parts firm's workers.

GM already is creaking under its own pension requirements and has lost almost $4bn in the first nine months of this year.


FROM OTHER NEWS SITES:
The Scotsman GM is not the only target as SEC eyes pensions problems - 5 hrs ago
Chicago TribuneSEC probe report dents GM stock - 7 hrs ago
CNN Money Wagoner's miserable month - 11 hrs ago
Reuters GM weakens on SEC probe, bankruptcy speculation - 27 hrs ago
MSNBC GM dealt another setback - 33 hrs ago
* Requires registration
The BBC is not responsible for the content of external internet sites


SEE ALSO:
Solid results drive car shares up
26 Oct 05 |  Business
GM looks to sell truck divisions
24 Oct 05 |  Business
Chrysler hopes to follow GM deal
18 Oct 05 |  Business
Ford and GM vehicle sales plummet
03 Oct 05 |  Business
GM signs health deal with unions
17 Oct 05 |  Business
US losses drive GM into the red
20 Jul 05 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific