Sector Snap: Auto suppliers fall

Patrick Archambault of Goldman Sachs cut his rating for GM to "Sell" from "Neutral" and his price target to $11 from $16, citing the increasing effects of high gas prices, decreasing consumer confidence and a tightening credit environment.

He also cut his ratings for parts-makers Lear Corp. to "Sell" from "Neutral" and for Tenneco to "Neutral" from "Buy." The news sent the shares of all three companies to record lows.

GM shares dropped $1.27, or 9.9 percent, to $11.54, in late morning trading, after tumbling as low as $11.32 in the opening minutes of trading.

The last time the Detroit-based automaker's shares dropped below the $12 mark was on Jan. 2, 1975, when they fell to $11.68, according to the University of Chicago's Center for Research in Security Prices.

Meanwhile, Lear dropped $2.84, or 15.6 percent, to $15.27 after falling earlier to $15.10 and easily passing its previous low mark of $16.98. Tenneco fell $1.31, or 8.1 percent, to $14.93 after dropping as low as $14.89, moving past their previous low of $15.92.

Elsewhere in the sector, American Axle & Manufacturing Holdings Inc. fell $1.17, or 12 percent, to $8.91 after dropping to $8.84, which marked its lowest share price in more than six years.

Dana Corp. and Visteon Corp. both hit new 52-week lows. Dana fell 58 cents, or 9.3 percent, to $5.66 and passed its previous low of $6.04; while Visteon dropped 19 cents, or 6.2 percent, to $2.90 after falling to $2.87 and passing its previous low of $3.02.

ArvinMeritor Inc. fell 81 cents, or 5.6 percent, to $13.57; and TRW Automotive Holdings Corp. fell $1.09, or 5.4 percent, to $18.97.