American Motors reported a $29-million first-quarter loss, after five successive quarters of profits. The fifth-largest domestic auto maker posted a profit of $5.1 million in the first three months of 1984.
AMC sales for the quarter just ended fell 15.1% to $919.4 million from $1.1 billion in the year-ago period.
"The continuing shift to larger cars, the resulting competitiveness of the small-car market and the related price competition contributed primarily to our first-quarter loss," said Jose Dedeurwaerder, the company's president and chief executive. "Fortunately, Jeep sales have remained strong in 1985."
The earnings report came a day after AMC announced that it will institute a plan in May to cut its internal budget by 25%.