Ford ended 12 years in the driving seat at Mazda yesterday with the sale of a 20 per cent stake in the Japanese carmaker. The struggling American company, which has given warning that it could run out of cash by next April, will raise about $538 million (£359 million).

Ford, which had held a 33 per cent stake in Mazda since 1996, has had an interest in the business since 1979. It will remain the biggest shareholder, with a 13 per cent stake.

Mazda is buying back 6.87 per cent of its shares from Ford and more than 20 undisclosed business partners will buy the remaining 13 per cent, the Japanese business said.

Ford and Mazda have established a strong strategic link during their association and both said that this would continue. They share car platforms, engineering centres and have jointly owned factories in the United States, China and Thailand.

Alan Mulally, the chief executive of Ford, said: “This agreement allows Ford to raise capital that will help to fund our product-led transformation, and at the same time allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies.”

Hisakazu Imaki, the chief executive of Mazda, said: “The sale of Mazda shares by our partner Ford will not result in any change in Mazda's strategic direction.”

Ford's move to take a controlling stake in Mazda in 1996 was seen as critical to pulling Mazda back from the brink of collapse and in helping to restore the brand. The American carmaker benefited from the alliance in terms of access to Mazda's smaller-car development.

Mr Imaki, 66, will move aside from the chief executive's role and become chairman. Takashi Yamanouchi, the executive vice-president of Mazda, will become chief executive.

Mr Mulally said that customers would not buy cars from bankrupt companies, as he and his counterparts at General Motors and Chrysler prepared to press their case to Congress for $25 billion in emergency government loans.

Mr Mulally said that there would be dire consequences if any one of the big three was forced to file for bankruptcy. He said that that would deter more potential buyers amid an already terrible market.

The three want the $25 billion on top of a $25 billion fund already earmarked for the car industry to encourage the development of greener technology. However, that fund had not been intended to be available until the spring, by which time all three could have been forced into bankruptcy.

The appeal for additional cash is being resisted by Senate Republicans, although they are in favour of diverting the green fund so that it can be made available more quickly.

In Europe it is thought that next week the European Union could put forward ways of helping the car industry. However, the measures will have to fit in with the EU's tough line against state aid. It is expected to be emphasised that any loans would be temporary and that other stimuli would be linked with efforts by the carmakers to improve environmental performance.

Germany has said that it is ready to offer money to Opel, GM's European subsidiary, so long as all the investment remains in Germany. Opel needs about €1billion (£844 million), Carl-Peter Forster, the head of GM Europe, has said. Opel wants the money to finance its assembly and development facilities if GM stops providing cash.

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