The Independent reported that Investor AB is considering a bid with a group of other investors.
Union organisations are said to be keen on a return to Swedish ownership, a factor which could help the Investor approach see off bids from other countries.
While Ford is continuing to state that Volvo is not for sale, Chief Executive Fredrik Arp did not rule out the possibility of “an auction”.
A spokesman for Investor refused to comment on “market rumours and speculation” and Ford’s European arm Premier Automotive Group also declined to comment.
Volvo is considered to be the most valuable asset within PAG, according to The Independent. Paul Newton, an analyst at consultancy firm Global Insight, told the paper that given “the amount of stories creeping out, there is no question that [Ford’s] banks are trying to sell all of the PAG brand”.
Investor is already deeply involved in the vehicle industry through its ownership of truck firm Scania, where it is the second largest shareholder after Germany’s Volkswagen.
Despite Ford’s repeated statements that Volvo Cars is not for sale, speculation has been rife. BMW has been labelled as a potential buyer and a few weeks ago Renault and AB Volvo, the truck and bus firm, were said to be lining up a bid.