GM Fans Breathe Relief

Updated from 12:03 p.m. EDT

Investors at General Motors (GM Quote) breathed easier Thursday as the company reported that a smaller amount of red ink flowed from its operations in the first quarter. The world's largest automaker managed to pare its losses and beef up its cash position even while it continued to bleed market share.

GM lost $323 million, or 57 cents a share, in the quarter, marking a big improvement from last year's loss of $1.3 billion, or $2.22 a share. This year's results include a charge of $681 million, or $1.20 a share, for a recent health care settlement with its workers, plus other items.

Excluding everything but the health care charge, GM lost $529 million, or 94 cents a share, in the latest quarter. That compares with last year's adjusted loss of $988 million, or $1.75 a share. ...