GM Sees $7 Billion Delphi Hit

Updated from 7:24 a.m. EDT

General Motors (GM Quote) shed more light on its ongoing entanglement in Delphi's bankruptcy on Thursday, even while the automaker added yet another wild card to its precarious turnaround efforts.

The company said in a filing with the Securities & Exchange Commission that it estimates its exposure to Delphi's bankruptcy will amount to $7 billion. Previously, it estimated its exposure around $6 billion to $7.5 billion. Last year, GM recorded roughly $6 billion in charges related to the bankruptcy of its former subsidiary and chief auto-parts supplier.

"GM continues to expect that the cost of these reimbursements will be more than offset in the long term by its savings from reductions to the $2 billion price penalty it now pays Delphi annually for systems, components and parts," the company said in the filing. ...