Vauxhall owner warns of losses

The parent of car maker Vauxhall today warned it would fall into the red in the first three months of this year after sales and prices in North America took a dive.

General Motors (GM) said it expected to report first quarter losses of about 1.50 US dollars (78p) per share in 2005, compared with a previous target of break-even or better. The company said it was reducing its full year earnings target from up to five US dollars (260p) a share to “one or two” US dollars (52p-104p) per share.