GM revenues hit by Russia and Brazil

US car giant General Motors has reported a fall in first quarter revenues, following lower demand from Brazil and Russia.

The Detroit-based automaker reported revenues of $35.7bn (£23.7bn), 4.5% lower than $37.4bn last year. Net income in the three months to 31 March was $945m, up from $145m a year earlier when the results were affected by the costs of vehicle recalls.

In March, GM said it would close its Russian plant because of weak demand. In South America, as well as lower demand from Brazil, results have also been hit by the strength of the dollar.

"Clearly the macro environment in South America, and it's primarily Brazil, deteriorated versus even where we thought it was going to be," said GM's chief financial officer Chuck Stevens. However, chief executive Mary Barra remained optimistic.

"Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year. "Continued execution of our plan... will drive profitable growth, return on invested capital and shareholder value."

Earlier in April, GM announced first quarter sales of 2.4 million vehicles, just behind Volkswagen and Toyota. Toyota is currently the world's biggest automaker, having announced global first quarter sales of 2.52 million vehicles.

bbc.com