Detroit, MI, United States (4E) – General Motors Co. said first-quarter earnings dropped 82 percent but significantly surpassed analysts’ estimates, as the auto maker’s move to increase prices for its cars and trucks in North America helped offset the cost of model recalls.
First-quarter profit was $213mn from $ 1.18bn in the previous year, according to GM. The first-quarter figure was the worst quarterly performance since the company emerged from bankruptcy.
Operating profit in North America declined to $557mn. This reflects the $1.3bn charge the company took to cover the costs related with the global recall of over 7 million cars, where 2.6 million of which were linked to faulty ignition switches.
GM’s South America operations recorded a larger loss of $156mn during the period, compared with $38mn a year ago due to weaker sales and currency impacts. The company’s European division also posted a wider loss of $284mn from $152mn in the prior year.
Meanwhile, GM’s international operations saw profit declined to $252mn in the first quarter from $472mn a year ago.