SAN FRANCISCO - General Motors Corp. shares dropped almost 11 percent Thursday, touching lows not seen in decades after Goldman Sachs told its clients to unload their positions in the face of the deteriorating automotive climate.

GM's stock, a component of the Dow Jones Industrial Average, finished down $1.38 at $11.43. In the past year, the shares have lost almost 70 percent of their value to lead all declines among major automakers.

Goldman cut its rating on GM to sell from neutral and lowered its price target to $11 from $19, saying deteriorating market fundamentals could exacerbate liquidity concerns.

"We think GM's automotive cash flow burn this year and next is likely to lead it to look to raise capital, which we believe could lead to significant shareholder dilution and/or a cut to the company's dividend," analyst Patrick Archambault said in a note.

June sales will likely make matters worse, he said, as potential customers have steered away from buying new vehicles, particularly trucks and SUVs, amid surging gas prices, falling consumer confidence and tightening credit.

With GM and the rest of the top automakers struggling to make sales and keep costs in check, the companies that supply them with parts are also feeling the impact.

As a result, Goldman lowered its rating on Lear Corp. to sell from neutral, citing its disproportionately large exposure to the big three truck makers. Lear shares dropped 17.4 percent to $15.15, making for a 58 percent decline in the past year.

Tenneco Inc. shares joined in the decline, down more than 10 percent to end at $14.600 after Goldman cut them to neutral from buy.

Archambault said that while he continues to see the stock as a core long-term holding with strong earnings and free cash-flow growth prospects, he believes second-quarter earnings could miss expectations.

"Our autos coverage universe has declined significantly, but we think there is more to go," he said.