DETROIT -- General Motors Co (GM.N) on Friday reported better-than-expected first-quarter net income driven by strong sales of its profitable large pickup trucks and crossovers in the United States, sending its shares up nearly two per cent in pre-market trading.

"We are executing our plan and it's delivering results," Chief Financial Officer Chuck Stevens told reporters at the company's headquarters in downtown Detroit. "This sets us up for another strong year."

U.S. sales of Chevrolet trucks and crossovers rose 3.5 per cent and 12 per cent, respectively, during the quarter, while GMC truck and crossover sales jumped almost 10 per cent.

The No. 1 U.S. automaker's pretax margin was 8.2 per cent, an improvement of 1.1 percentage points.

Sales of its less profitable cars, however, were down in the United States from the first quarter of 2016.

The results underscored a trend in the U.S. market where consumers have increasingly shunned cars in favor of larger SUVs, crossovers and trucks.

Fiat Chrysler Automobiles NV (FCAU.N) reported higher operating profit this week due to a bump in SUV sales.

No. 2 U.S. automaker Ford (F.N) on Thursday reported lower quarterly net profit due to higher commodity, engineering and recall costs, and a drop in vehicle sales.

GM's results come at a time of uncertainty for the

U.S. auto industry following disappointing sales in March.

New vehicle sales hit a record of 17.55 million units in 2016, and analysts expect a slight sales decline in 2017.

Ratings agencies have warned of worsening credit and there are concerns millions of nearly new leased vehicles due to flood the market over the next couple of years will depress used-car values and hurt U.S. automakers' sales. Some analysts worry that rising consumer discounts indicate waning interest by American drivers in new vehicles after a five-year run of rising sales.

Stevens said that while consumer discounts have risen, so have average vehicle prices which he said was more important.

"Clearly it's a more competitive market out there," he said. "But that's not a surprise given that the industry is plateauing."

Stevens said the No. 1 U.S. automaker will reduce inventory levels, a concern for Wall Street to around 70 days by the end of 2017 from 98 at the end of March. The company has built up inventory ahead of a planned 10-week summer production shutdown in the third quarter and new product launches.

GM said first-quarter vehicle sales rose slightly in Europe, where it has agreed to sell its European Opel and Vauxhall operations to France's PSA Group. But sales dropped more than six per cent in the company's Asia, Middle East and Africa unit.

GM reported first-quarter net profit of US$2.6 billion, or US$1.70 per share, up 33 per cent from US$1.95 billion, or US$1.24 per share, a year earlier. Analysts, on average, expected earnings per share of US$1.48.

The company forecast 2017 full-year adjusted earnings per share of US$6 to US$6.50. Analysts expect earnings of US$5.95.

In premarket trading, GM shares were up 1.8 per cent at US$35.15.