Aston Martin Cut Loose

Investors are speculating that Ford will follow the lead of its Detroit counterpart, General Motors (GM), by selling off a raft of assets and paring down its workforce to match its dwindling market share in North America and fund a product makeover.

Both companies are losing market share to foreign-based competitors, like Toyota (TM), that have lower-cost business models and make smaller, more fuel-efficient cars.

After a disastrous year in 2005, GM has rebounded this year to lead the Dow Jones Industrial Average in gains, but Ford has lagged behind. GM slashed its dividend payment in half, agreed to sell majority stakes in its residential mortgage and financing businesses, and executed a massive employee-buyout plan. Now GM's CEO, Richard Wagoner, is in talks with Carlos Ghosn, the CEO of Nissan and Renault, about a game-changing partnership.

But Ford is now grabbing back its share of the spotlight. The company has halved its dividend. It's expected to offer its hourly workers a buyout package to leave the company, and reports have emerged that it may sell off its own finance business, Ford Credit, to beef up its cash reserves.

Last week, a USA Today report citing an unnamed source said the Ford family is considering taking the company private in order to restructure it without the pressures of public attention.

Also, The Wall Street Journal reported that Bill Ford has approached Nissan-Renault CEO Carlos Ghosn about joining their alliance, should a proposed deal between GM and Nissan-Renault fall through.

Ford promised investors a detailed update to its "Way Forward" turnaround plan in September. Until then, the automaker's plans, outside of a possible sale for Aston Martin, will remain classified.

Shares of Ford recently were up 17 cents, or 2.1%, to $8.44.

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