For the first quarter of 2008 General Motors posted a net loss of $3.25 billion, most generated from its GMAC investment and ongoing problems with a supplier, Delphi Corp.

The figure includes an impairment charge of $1.45 billion for its 49% share of financier GMAC. A $731 million charge addressed the estimated cost of the Delphi bankruptcy restructuring, which is ongoing. Additionally the company cited $800 million in losses attributable to the United Auto Worker's two-month strike against American Axle and Manufacturing Holdings Inc.

In relation to its vehicle operations in North America GM had a before-tax loss of $812 million on revenue of $24.5 million compared to $208 million on $28.1 billion in first quarter 2007. The company continued to be profitable overseas with a gain of $1 billion before taxes in endeavors in Asia, Europe, and other foreign markets.

Ray Young, the Chief Financial Officer for GM said, "The headline numbers don't look that great, but when you actually peel back the numbers . . . I feel the first quarter is very encouraging."

The 10% decline in GM vehicle sales in North America is clearly tied to the troubled U.S. economy where gas prices that are rising steadily toward $4 a gallon and tightened credit in response to the mortgage crisis are serving to drive sales down across the entire automotive industry.