General Motors has unexpectedly reported a 90% drop in first-quarter earnings, as mortgage-related losses at its financial services affiliate more than offset an improvement in its car operations.
GM, which Toyota Motor displaced as the world's largest carmaker in the first quarter, said profit fell to $62m, from $602m a year earlier.
GM chief financial officer Fritz Henderson said weaker GMAC results were the major reason earnings missed even the lowest of Wall Street expectations.
The company, which sold a majority stake in the financial services firm last year, realised a loss of $115m in the first quarter from the 49% interest it still holds.
Yesterday, GMAC posted a first-quarter loss of $305m as the pressure in the US mortgage market forced it to take charges at its housing finance unit.
