Ford says open to partnerships in emerging markets

DETROIT (Reuters) - Ford Motor Co Chief Executive Alan Mulally said the U.S. automaker was open to negotiating partnerships in fast-growing emerging markets, including India.

"That's a possibility, teaming in India, too," Mulally told Reuters at a holiday party in Dearborn, Michigan.

Mulally said Ford's partnership in China with Changan Auto Group had helped the company expand in the fast-growing Asian market.

Faced with declining demand in its home market, Ford and its larger rival General Motors Corp are looking to increase its presence in emerging markets such as Russia and India.

Separately, Mulally said the risk of a downturn in the U.S. economy was hanging over the outlook for vehicle sales.

"There are definite headwinds," Mulally said. "We are watching it very carefully."

Mulally said Ford would cut production if market demand weakened to keep inventories from building.

Ford has forecast that U.S. demand for light trucks and cars could dip below 15.5 million units on an annualized basis over the next six months.

Pressured by tighter credit and a slumping housing market, U.S. vehicle sales this year are on track to slip to 16.1 million units, the lowest annual tally since 1998.