"We are not ruling out the possibility. We are considering an alliance with Hyundai Motor," Ford vice-chairman W Wayne Booker, told foreign reporters. But he said the two companies were not yet talking about the issue.

Booker denied speculation by some media that Ford might be in the race for a takeover of Daewoo Motor only to drive up the carmaker's price for competitor General Motors.

"That's not our intention. We will make every effort to win in the (bidding) process," he said.

By taking over Daewoo, US automakers hope to strengthen their presence in Asia, which is expected to become the fastest growing auto market in the world.