General Motors' earnings fell by nearly two-thirds in the first quarter as the company's European operations racked up losses due to the eurozone crisis, the company said Thursday, May 3, according to AFP.

Net income fell to $1.35 billion from $3.42 billion a year earlier, after the company lost $300 million in its European operations.

Basic earnings per share sank to 64 cents from $2.09, or 60 cents on a diluted basis.

The leading US carmaker said its key US and China markets remained strong, with global vehicle deliveries rising by about 100,000 units to 2.3 million in the period to March 31.

The company set a sales record in China in the quarter, said GM chief executive Dan Akerson. But other areas, especially Europe, held growth back.

"New products are starting to make a difference in South America but Europe remains a work in progress," said Akerson.

Revenues were higher, $37.8 billion compare to $36.2 billion.

In the North American market, GM said earnings were up about 30 percent to $1.7 billion.

Despite an eight percent fall in US sales in April - not covered by the newest earnings report - GM raised its annual forecast for the total US market, including itself and other car makers, by 500,000 vehicles to between 14 million and 14.5 million vehicles.