scott146

GM's Ineffective Accounting Controls

Well, the biggest source of these problems (for companies other than GM as well) is that C-level management never wants to allocate resources to the accounting function. Accounting is probably lowest on the list when it comes to capital allocation time at most public and likely a majority of privately-held companies as well. So it's no surprise when companies can get their books straight (not counting outright fraud). In most cases, mid to large cap companies have implemented ERP financial systems in the past few years and I believe that there are plenty of errors currently swept under the rug because time wasn't taken during the implementation to properly transfer the financial data.

GM's Wagoner: 'U.S. Auto Industry Consolidation Unlikely'

This is sad to hear, because the US auto industry is in dire need of consolidation. It is this kind of cluelessness that has brought the US auto industry to the predicament it is now in.