Goldman Sacks tells shareholders to sell

GM, the largest U.S. automaker, was cut to “sell'' at Goldman, Sachs & Co., saying the shares will continue to slide on a worsening sales outlook. GM fell as much as 11 percent in New York trading. Soaring gas prices, falling consumer confidence and tighter credit conditions will weigh on auto-industry profits, Goldman wrote in a report today. GM, which had been rated “neutral,'' may need to raise money and cut its dividend as its cash flow deteriorates, the analysts wrote.

The automaker's U.S. sales tumbled 16 percent this year through May as consumer preferences shifted to cars and smaller sport-utility vehicles. GM has cut truck production and announced plans to close factories. Bloomberg