Following a similar move by HSBC merchant Saks, General Motors said yesterday it will restate its financial statements for 2001 because they were overstated by about US$300 million ($444 million) to $US400 million.

Accounting errors led to the wrong figures for net income from continuing operations, which were overstated by 25 per cent to 35 per cent, the world’s largest auto maker said in a filing with the Securities and Exchange Commission. The SEC also investigated Saks and later broadened their investigation.

GM has been conducting an internal review of credits received from suppliers and its accounting treatment of them from 2000 to 2005. Saks had a similar experience. Each time it gives the SEC a closer look at ongoing compensation from HSBC, classified as a share if late fees, overlimit fees, interest and more. Many of these fees are questionable at best since the customer – in this case GM card holders – were not actually late with their payments.

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