GM suffers heavy losses

DETROIT — General Motors Corp. reported its deepest quarterly loss in more than a decade — $1.1 billion — as rising health care costs and lackluster response to some new models hammered its North American business. With health costs not getting any cheaper and Asian automakers grabbing more of the market, the outlook for the world’s largest automaker remains bleak.

The January-March loss amounted to $1.95 per share, compared with earnings of $1.3 billion, or $2.25 a share, in the year-ago quarter, when the company benefited handsomely from its finance arm and improved business in Asia.

It marked Detroit-based GM’s steepest quarterly deficit since the first quarter of 1992, when it reported a $21 billion loss primarily because of changes in accounting procedures for retiree health care costs.

Revenue fell 4.3 percent to $45.8 billion from $47.8 billion a year ago.

“We expected a difficult quarter,” GM chief financial officer John Devine said in a conference call with investors and automotive journalists.

GM shares fell 10 cents to close at $26.09 on the New York Stock Exchange.