Ford chief executive Alan Mulally said this week that the car giant could announce the sale of its premium British brands Jaguar and Land Rover by the end of the year.
"We will probably have something to announce by the end of this year, toward the first part of next year," Mulally told reporters at a ceremony marking the formal signing of the four-year labour contract reached last month with the United Auto Workers union (UAW).
Ford has narrowed the auction of Jaguar and Land Rover to three bids. The remaining bidders include Indian carmaker Tata Motors and rival Mahindra, which teamed up with buy-out firm Apollo.
The firm has been exploring a sale of the brands since June. They have been valued by a Merrill Lynch analyst at as much as $1.5 billion (€1 billion) combined.
Mulally said the company is keeping an eye on the slowing US economy, and will adjust production of vehicles according to market demand. US vehicle sales are set to finish the year with the lowest tally since 1998.
With concern mounting about the risk of recession, many analysts are now expecting a continued slide in US vehicle sales through 2008, which would mark the third consecutive year of lower sales.
Ford and the other US automakers were looking to reduce their operating costs through the new UAW contract, to be more competitive with Japanese automakers.
Ford clinched a new four-year labour deal for over 54,000 UAW workers on November 3rd, that will pay new hires lower wages, between $26-$31 (€17.62-€21) an hour, including benefits.
Ford, which is restructuring its North American operations to return to sustained profits, also scaled back its plans to close 16 factories.
Ford chairman Bill Ford said the company will respond to new fuel-economy standards passed last week by the US congress. "We have to do it," Bill Ford said, but added that meeting the goal would be a "stretch".