Ford Will Join Bidding for Kia Motors

Ford Motor Co., the world’s No. 2 auto maker, submitted a letter of intent to participate in an auction of South Korea’s Kia Motors Corp. and Asia Motors Co., Kia said. The decision to sell the insolvent Kia rather than shut it down has drawn criticism from investors for failing to address the problem of excess capacity in the world’s fifth-largest auto industry. Hyundai Motor Co., Korea’s largest auto maker, is operating at a record low 40% capacity amid a deepening recession. Hyundai and Samsung Motor Co. also will participate in the auction. Daewoo Motor Co. is expected to join in. Ford owns 9.4% of Kia; its Mazda Motor Corp. affiliate owns 7%. Ford shares closed at $58.38, down $1.69, on the NYSE.