GM seeks delay to file accounts

GM has been facing increasing losses

Ailing US car firm General Motors has said it would request an extension to file its financial reports.

GM said it needed until 16 March to file its annual report and earnings for the last three months of 2006 to the Securities and Exchange Commission.

GM said it would be unable to stick to Thursday's deadline without "unreasonable effort or expense".

GM has already had to re-state six years of results and was investigated in 2006 for its accounting practices.

In mid-February, GM said it had "substantially completed" a review of two accounting issues that had prompted the restatement of earnings dating back to 2002.

And last year, General Motors was forced to raise its annual 2005 losses by $2bn (£1.1bn) because of accounting errors, prompting it to delay filing its 2005 annual report.

According to Securities and Exchange Commission (SEC) rules, if a firm misses the first deadline to file earnings, it can have another 15 days to file.

After that, the financial watchdog can file a civil action against the firm.

Shares in GM were down 2% in early trade in New York.