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GM could take $1 billion charge on Delphi

General Motors Corp. could take a $1 billion charge in the second quarter in relation to its financial exposure to Delphi Corp, GM spokeswoman Renee Rashid-Merem said on Thursday.
/ Source: Reuters

General Motors Corp. could take a $1 billion charge in the second quarter in relation to its financial exposure to Delphi Corp, GM spokeswoman Renee Rashid-Merem said on Thursday.

The No.1 U.S. automaker said in a U.S. Securities and Exchange Commission filing that its exposure to bankrupt auto parts maker Delphi Corp. was probably $7 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.”

“That’s primarily non-cash,” she added.