Terra Firma, the private equity firm, has requested sales documents from Ford and is considering a bid for the two firms, according to a Financial Times report.

The buy-out group has completed some of the due diligence required to make an offer and joins Cerberus Capital Management, TPG, Ripplewood Holdings, Apollo Management, and One Equity Partners in eyeing up the carmakers.

It is unclear whether Indian carmakers Tata and Mahindra & Mahindra remain interested. Ford is expected to ask for indicative offers next month and is understood to want to sell the two companies together rather than separately. While Ford and its advisors remain committed to keeping details of the bidding process under wraps, a deal is likely by the end of the year or in early 2008.