General Motors revises 2005 loss to $10.6 billion - East Valley Tribune: Business

General Motors revises 2005 loss to $10.6 billion

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Posted: Friday, March 17, 2006 4:51 am | Updated: 4:04 pm, Fri Oct 7, 2011.

DETROIT - General Motors Corp. revised its loss for 2005 to $10.6 billion — $2 billion more than it reported in January — citing higher costs it anticipates for its broad restructuring and the bankruptcy reorganization of Delphi Corp.

GM also said late Thursday it will recognize a previously reported goodwill impairment charge of $439 million at its finance arm, General Motors Acceptance Corp.

GM, the world’s largest automaker, said it expects to increase the charge for its exposure relating to Delphi’s Chapter 11 filing to $3.6 billion from the previous estimate of $2.3 billion. Additionally, GM will boost its North American restructuring charge to $1.7 billion from the previously reported $1.3 billion to cover higher expected costs for plants the company aims to close. The previous charge included cash payments that would be made to affected employees during the current labor agreement, while the revised charge considers GM’s estimate of costs it expects to pay after the contract expires in September 2007.

The change ‘‘reflects developments in the discussions with Delphi’’ and the United Auto Workers union on a comprehensive agreement, the company said in a statement. ‘‘The revised Delphi charge is based on the facts and circumstances as they exist today,’’ the company said.

GM spokesman Jerry Dubrowski said the company increased the charge by $1.3 billion after it ‘‘refined the range’’ of its potential liability for Delphi workers’ compensation.

GM loss

HOW MUCH?: General Motors Corp. boosted its loss for 2005 to $10.6 billion, $2 billion more than it reported two months ago.

BUT WHY?: Most of the change is from bigger charges the auto maker is taking to revamp its money-losing North American operations and for costs it sees coming in the bankruptcy case of its former parts unit, Delphi.

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