GENERAL MOTORS, the world’s biggest carmaker, has been singled out in an investigation by the US Securities and Exchange Commission (SEC)into the way that it accounts for pensions and employee benefits.

The company admitted yesterday that it has been subpoenaed by the market regulator to provide information about its $90 billion (£50 billion) pension fund and its other employee benefit programmes.

The SEC also wants to see details of GM’s potential $12 billion pension fund liability at Delphi, the bankrupt car parts group. Last year the SEC launched an unprecedented general inquiry into the way in which such plans are accounted for by giant American companies.

SEC insiders told The Times last night, however, that the current investigation was focused on General Motors. “Anyone who sees the subpoena can see that General Motors is named in the title of the overall investigation,” the SEC source said.

The wider inquiry was begun on October 14 last year by Stephen Cutler, former head of enforcement at the SEC. Mr Cutler said at the time that he was concerned about the way in which companies used cash held in their pension funds and wanted to know whether any companies used it to bolster earnings or manipulate the balance sheet.

The SEC has not produced any evidence to suggest that GM has done anything wrong but sources said that the inquiry had been stepped up from a “risk-based” investigation with no specific evidence against any company to a more focused inquiry.

GM declined to comment other than to confirm that it had received several subpoenas from the SEC and that it would co- operate fully with the inquiry.

The SEC investigation is the latest in a seemingly endless stream of bad news to hit GM. The company has already reported a record $3.8 billion of losses so far this year and its credit rating has been reduced to junk status by the major rating agencies.

GM’s $77 billion healthcare plan has also proved to be a burden so big that the company was forced two weeks ago to renegotiate its terms with the United Autoworkers Union, cutting some $3 billion a year from costs. However, that deal has not been finalised and there are mounting fears that the SEC inquiry could derail the plans, at least in the short term.

Richard Wagoner, the chief executive of General Motors, has also been forced to seek a buyer for all or part of the General Motors Acceptance Corporation (GMAC), the finance business, in a further attempt to get the ailing carmaker back on track.

GMAC is also subject to the SEC investigation, it has been disclosed.

GM shares plunged 6.8 per cent to $27.19 yesterday, helping to push the Dow Jones industrial average down 115.10 points, or 1.1 per cent, to finish at 10,229.90.

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