Ford reportedly mulls selling Mazda stake

Ford Motor Co. is exploring the sale of its controlling stake in Japan's Mazda Motor Co. as the second-largest U.S. automaker tries to steady its finances amid slumping sales, the Wall Street Journal reported on Saturday.

It's unclear how much of the 33.4% controlling interest in Mazda would be for sale, but an unnamed person familiar with the matter told the Journal that Ford is looking at a broad range of asset sales ahead of big quarterly losses the company is expected to unveil later this month.

Ford bought a quarter of Mazda in 1979, then increased that stake to 33.4% in 1996 -- giving it effective control -- as the Japanese carmaker struggled with high debt and falling sales.

These roles have now reversed as Mazda recovered to post record profit in recent years, while Ford has lost $24 billion since 2006.

As the financial crisis deepened in recent days, investors became concerned that slumping sales might leave Ford and U.S. rival General Motors short of the cash they need to survive.

In an interview with the Journal on Friday, Ford Chief Executive Alan Mulally reiterated that bankruptcy is not an option, though there is no clear indication about when it might return to profitability.

Like Ford, GM may now be considering more drastic steps to survive. The company is reportedly in early talks about merging with rival Chrysler LLC.