AFSCME 3357-HOF'S BLOG

GM's CPA Firm Just Says No
2 Billion loss from Strikes - tip of the iceberg

GM's annual report was released on Friday, just in time for the Memorial Day weekend. If you want to bury bad news, that's the best time to release it, and it appeared to work this time, because as far as I can tell, the Wall Street Journal has not even picked this up yet. I got it from thetruthaboutcars.com. General Motors' outside auditing firm, Deloitte & Touche, refused to give the typical approval of the company's financial statement. According to the auditors: “In our opinion, because of the effect of the material weaknesses identified above on the achievement of the objectives of the control criteria, the Corporation has not maintained effective internal control over financial reporting as of December 31,2007." That's basically saying they don't know what the deal is with GM's books.

Separately, news came that the American Axle strike is expected to cost GM over $2 billion. During the weekend, GM's stock plunged about 5% in over-the-counter trading, falling to a 26 year low.