DETROIT (AP) — Shares of General Motors Corp. tumbled to a 16-year low Thursday on news the world's biggest automaker will restate its earnings from 2001 because of an accounting error.
The stock drop came the same day GM workers were voting on an agreement endorsed by labor leaders that would require them to pay more for their health care. GM and the United Auto Workers reached the agreement last month, but workers must ratify it for it to go into effect.
GM shares fell $1.12, or 4.5 percent, to close at $23.51 on the New York Stock Exchange. That is their lowest level in 16 years, according to Standard & Poor's Ratings Services. The shares had been trading in a 52-week range of $24.62 to $40.82.
Workers were voting through Thursday evening and it wasn't clear when results would be announced. UAW spokesman Roger Kerson said results likely would be released Friday afternoon. GM said it wouldn't comment until the results were announced.
In a document filed Wednesday with the Securities and Exchange Commission, GM said the accounting error caused its 2001 earnings to be overstated by $300 million to $400 million, or up to 35 percent of its reported earnings. GM said an internal investigation revealed the error.