North America boosts GM's 1st-quarter results
DETROIT — Strong sales in North America and China are generating big profits for General Motors. Now the company needs the rest of the world to play along.
GM’s net income totaled $1 billion in the first quarter as it sold more vehicles at higher prices in the U.S. But the earnings fell 69 percent from a year earlier. The reasons: Big one-time charges and high operating costs in Europe, and lackluster earnings in South America.
For GM to continue its rebound from bankruptcy three years ago, it needs Europe and South America to improve, especially if North American sales slow.
So far, the story of GM’s comeback from near collapse has been North America, where the company earns most of its money, and China, where it sells its greatest number of cars.
In North America, GM has slashed costs, introduced hot-selling cars and improved its reputation for quality.
That success continued in the first quarter, when the automaker posted a $1.7 billion pretax profit in North America. It also did well in Asia, where it made $529 million in the first three months of the year.
But it’s a different story in Europe, where GM lost $256 million, and South America, where earnings fell 8 percent to $83 million.
