GM misstated '01 income by up to $400 million - 11/10/05

General Motors Restates 2001 Earnings

General Motors is worth $400 million less than it thought it was.

GM restated its 2001 earnings downard $400 million (half its profit for the year) due to misapplication of "supplier credits". Corrections to later years' statements are to follow. The fact that GM didn't deny that the supplier credit issue had anything to do with Delphi makes me believe that it probably had a lot to do with Delphi. We'll find out in the future.

In the meantime, GM's junk bond ratings went down another two notches.

GM misstated '01 income by up to $400 million - 11/10/05