Embattled US car maker General Motors last night raised its estimated loss for 2005 by £2 billion to £10.6 billion, blaming the move on increased restructuring costs and other charges.
The world's largest car maker also intends to restate earnings from 2000 through the first quarter of 2006 and delay filing its annual report due to recently discovered accounting irregularities. GM is currently under investigation by the US Securities and Exchange Commission (SEC).
The announcement comes at a time when a number of analysts have warned that GM is at risk of being forced to seek bankruptcy protection.
GM has faced a steady decline in US market share and a sharp drop in income as consumers shy away from sports utility vehicles. The company announced plans last year to shut 12 facilities and cut 300,000 jobs by 2008.
Last night GM increased its estimated charge for that restructuring by $400m to $1.7 billion. GM has also been pressured by its obligations to the employees of its bankrupt former parts subsidiary, Delphi, and is currently in negotiations with Delphi and the car workers union UAW.
