Even as hopes for a quick congressional bail-out begin to fade, Detroit's Big Two carmakers, Ford and GM have begun to dispose of stake holdings in other firms in a desperate bid to raise cash. While Ford Motor Co said it would dispose of nearly 20 per cent stake in Mazda Motor Co and raise $540 million in cash, General Motors said it would sell its entire stake in Suzuki Motor Corp. for $230 million.

The moves come even as both firms await a decision from Washington on aid for the auto industry. Ford CEO Alan Mulally, Chrysler boss Robert Nardelli and Richard Wagoner of General Motors are due to testify before the US senate's banking, housing and urban affairs committee today.

The Dearborn, Mich., headquartered Ford said it would sell 20 per cent of Mazda, reducing its holdings to 13 per cent. Mazda will buy back up to a 6.9 per cent stake for as much as 17.9 billion yen ($186 million), it said separately. The balance 13 per cent is to be picked up by unidentified ``strategic business partners.'' The deal will take place tomorrow.

The Mazda stake sale ``allows Ford to raise capital that will help fund our product-led transformation,'' Mulally said in a statement.

Ford took effective control of Mazda in May 1996, raising its stake holding to 33.4 per cent.

Ford's US sales plunged 28 per cent in October, and its shares have tumbled 74 per cent this year. It has backed off from an earlier profit forecast for 2009 and is yet to set a new target.

It sold its Jaguar and Land Rover luxury units to India's Tata Motors Ltd. for about $2.4 billion in June.

Meanwhile, GM said it would be selling back its 3.04 per cent stake in Suzuki, currently worth about $230 million, back to the Japanese automaker. According to industry analysts, the stock sale would generate between three and seven days of operating cash for the Detroit behemoth.

It also said it would save more money by delaying for two weeks incentive payments to its dealers. It did not provide details about how much it would save through the measure.

Industry observers said three to seven days worth of operating cash may be significant helping the beleaguered giant to reach a point where it may get some aid, very likely from the government, though chances at the moment are slim.

For long the world's largest automaker, GM has said it may not have enough money to operate through to the end of the year.

Responding to criticism that it hasn't done enough to help itself before seeking bailouts from the government, GM said Monday it was already saving at least $500 million annually from its 2007 UAW contract and that it expects to save nearly $4 billion annually in 2010 when a UAW trust takes over hourly retiree health care costs.