GM's First-Quarter Profit Falls 14 Percent
- General Motors' first-quarter net profit fell 14 percent to $865 million.
- Pretax profit in North America dropped to $1.4 billion from $1.6 billion in the first quarter of 2012.
- The cost of tooling up for the new Chevrolet Silverado and GMC Sierra pickup trucks, plus heavy incentives on the outgoing trucks affected GM's first-quarter results.
DETROIT — General Motors' first-quarter profit fell 14 percent to $865 million, in part due to the launch of its new full-size pickup trucks in North America.
Pretax profit in North America dropped to $1.4 billion from $1.6 billion in the first quarter of 2012. The pretax loss in Europe narrowed to $175 million, from $294 million in the first quarter of 2012 and was lower than expected.
Worldwide revenue for the quarter was $36.9 billion, down from $37.8 billion a year ago.
"The year is off to a solid start as we increased our global share with strong new products that are attracting customers around the world," said Dan Akerson, GM chairman and CEO, in a statement. "In addition, we saw progress in Europe thanks to strong cost actions and great vehicles like the Opel Adam and Mokka."
Edmunds says: GM's results are expected to improve once some of its key products, like the 2014 Chevrolet Silverado and GMC Sierra, are launched.