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General Motors has reported a fall in three-month profits as a result of ignition-switch payouts.

The biggest US carmaker's $1.4bn (£900m), down 7.6% on the same period last year.

GM sold 794,000 cars in North America during the quarter, which was up 9.2% on the previous year.

But profits were hit by the $900m settlement GM has had to pay for failing to recall cars with faulty ignitions.

It has also paid $600m in civil settlements.

But GM shares have risen 4% in New York as a result of the strength of the underlying performance.

Overall sales of cars in the US in September were the strongest for a decade.

North American pre-tax earnings for GM were up 34% at a record $3.3bn.

Losses in Europe were down to $231m from $387m the year before.

It sold 814,000 cars in China, which was down on the previous year, but profit margins were slightly higher.