'We're looking at a lot of different things with liquidity in mind,' said one person close to the situation. 'But things are changing week to week, and I don't know if anything is going to happen or not. Nothing is imminent or definitive.'

Ford's share price dropped below $2 Friday, and the current economic crisis has dealt a massive blow to its already weak sales, raising new concerns about the long-term viability of the company.

Ford's plan is to retain a sufficient stake in Mazda to guarantee that critical collaborative ties between the two companies continue, the source said.

Reports of a possible Mazda sale first surfaced in the Japanese media earlier today.

Japanese broadcaster NHK reported that the struggling Dearborn automaker was looking to sell about 20 percent of Mazda. It said Ford has already contacted other Japanese companies about a possible sale and said Mazda itself would likely purchase some of the shares.

Subsequent reports by the Nikkei business daily said Japan's Sumitomo Corp., which already has strong ties to Mazda, was considering a stake. The paper also identified India's Tata Motors Ltd. as another potential buyer.

Mazda issued a statement saying that 'nothing has been decided,' but it did not deny that talks are under way.

Ford also refused to comment on any negotiations.

'Our relationship with Mazda remains unchanged,' said Ford spokesman Mark Truby.

But last month, Mazda announced that it would no longer use Ford Credit to finance vehicle sales. Its dealers are now using Chase Auto Finance to underwrite purchases.

Mazda is worth about $4.1 billion, making Ford's share worth more than $1.3 billion. On Friday, CEO Alan Mulally said Ford needs to hang on to as much cash as possible to weather the current financial crisis.

In recent years, Ford has become increasingly dependent on Mazda to supply the underlying architectures for most of its cars and crossovers. Ford has also adopted Mazda's product development system.

In return, Mazda has benefited from Ford's global scale. It has used Ford engines and other components to build cars specifically for foreign markets like the United States.

Mazda was on the brink of collapse when Ford acquired a majority stake in 2001. Since then, it has rebounded with record sales and profits. But Ford has lost ground to other Japanese automakers and has posted record losses.

Mulally has called Mazda 'critical' to Ford's turnaround efforts and has publicly ruled out a sale. But that was before the current economic crisis sent Ford's share prices plummeting to levels not seen since the 1980s.

Ford has also used its stake in Mazda to help secure a $23 billion loan package that is vital to the company's ongoing operations. However, a source said the terms of those loan covenants would still allow Ford to sell part of its Mazda stake as long as it used the proceeds to pay down debt.

Volvo is worth substantially more than Mazda, at least in theory. But the Swedish carmaker has been unable to turn a profit because of unfavorable exchange rates and a bloated cost structure.

Ford recently replaced Volvo CEO Fredrik Arp with Ford veteran Stephen Odell, who has been given a free hand to do whatever is necessary to return Volvo to profitability.

Last week, he announced that Volvo was cutting another 4,000 jobs worldwide in an effort to rein in expenses.

'Volvo has too many issues to sell right now,' one source said Saturday. 'Odell is trying to get it back on track.'