TOKYO - FORD Motor has decided to sell nearly two-thirds of its stake in Mazda Motor Corp after finding several Japanese buyers, including Mazda itself, a newspaper said on Tuesday.

The Nikkei business newspaper reported that Ford, which currently owns 33.4 per cent of Mazda, would sell about a 20 per cent stake in the company for an estimated 50 billion yen (S$790 million), based on current market prices.

Japanese media have reported since last month that money-losing Ford was considering selling most of its stake in Mazda but would keep some shares and management ties.

The sale, if it happens, would give Ford some desperately needed cash. Ford, along with fellow US automakers General Motors and Chrysler, are seeking a $25 billion (S$38.1 billion) government lifeline to weather the deepening economic crisis.

On Monday, General Motors said it would sell its remaining 3.02 per cent stake in Japan's Suzuki Motor Corp for 22.37 billion yen.

Hiroshima-based Mazda would be one of the buyers of Ford's shares, the Nikkei said.

Mazda, which makes the RX-8 sports car and Miata roadster, declined to comment on the report, saying nothing has been decided.

Mazda shares rose 6.4 per cent to close at 184 yen Tuesday.

Media reports have also mentioned several other Japanese companies, including regional Hiroshima Bank, trading houses Sumitomo Corp and Itochu Corp, insurance firms including Tokio Marine Holdings, as well as auto parts maker Denso Corp, have been named as willing buyers of Mazda shares from Ford.

Ford has struggled with a sales slump in the US, burning through nearly US$11 billion of its cash stockpile in the past year.

It reported its worst-ever quarterly loss of US$8.7 billion in the second quarter.

Over the last decade, Ford helped engineer a turnaround at once-struggling Mazda, sending executives and sharing technology and auto parts to cut costs. -- AP