GM blamed the impact of the American Axle strike on its North American operations, which led to delays in production, as well as general weakness in the U.S. economy and a shift in demand from its key SUV and pickup models.
The reported results for the first quarter include unfavorable special items totaling $2.9 billion. The charges include a $1.45 billion non-cash write down of an investment in GMAC and $731 million to increase its liability in Delphi Corp's ongoing bankruptcy case.
Ford, meanwhile, managed to post a modest profit of $100 million dollars over the quarter and expects to return to full profitability by the end of the year.