Insiders: Ford planning to sell Mazda stake

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Ford is in the process of finding potential buyers for its 33.4 percent stake in Mazda, sources told Reuters late Friday. Ford, often viewed as the parent company of Mazda, recently sold its Aston Martin, Jaguar, and Land Rover brands in an effort to raise capital. Ford�s stake in Mazda is said to be worth around $1.36 billion.

Earlier, Japan�s NHK reported the automaker was considering selling at least a 20 percent stake in the company, but it appears a complete sale of all 33.4 percent is on the table. The debt-laden company is in talks with several Japanese firms about the sale.

Many of Ford�s products are tightly linked with Mazda�s � the companies share platforms for a number of vehicles, and development on a number of projects has been joint. Another Ford subsidiary possibly for sale, Volvo, also shares platforms with Mazda and Ford, making de-integration of next-generation vehicles projects a challenge.

Ford shares fell to a 26-year low of $2.00 on Friday. Ford�s declining auto sales, coupled with an extremely unstable financial market, are to blame. Like GM, Ford has ruled out a bankruptcy filing, said CEO Alan Mulally.

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