Major reversal for General Motors

GENERAL MOTORS, the world’s largest carmaker, yesterday said it lost $1.1 billion (€800m) in the first quarter, clobbered by rising healthcare costs, lukewarm response to some new models and special charges.

The loss at its worldwide automotive operations more than doubled to $1.3bn, most of it in North America.

It was GM’s steepest quarterly deficit since the first quarter of 1992, when it reported a $21bn loss primarily because of changes in accounting procedures for retiree healthcare costs.