GM may take $1 billion charge on Delphi as SEC seeks restatement of accounts

Mumbai: General Motors Corp, the No 1 US auto maker, said it could take a $1 billion charge in the second quarter by restating accounts related to its bankrupt auto parts business Delphi Corporation.

The US Securities and Exchange Commission has asked GM to show documents related to the accounting used in its latest annual report, GM spokeswoman Renee Rashid-Merem said.

GM said the regulators are reviewing its accounting for commodity and foreign-exchange contracts.

In an SEC filing, GM said its exposure to bankrupt auto parts maker Delphi Corp. was probably $7 billion while it had accounted for $6 billion.

"We have taken a $6 billion charge to date," Rashid-Merem said. "In order to hit that $7 billion, we would potentially take an additional $1 billion charge in the second quarter."

GM said it may also have to restate some results after the SEC reviews accounting at the former General Motors Acceptance Corp. finance unit.