Chinese carmaker Geely Automotive has appointed advisors for a possible bid for Volvo.

The company, which already owns 23% of black cab manufacturer Manganese Bronze, has appointed NM Rothschild to examine the possible purchase of Volvo from its parent group Ford.

The Sunday Times reported that Geely is looking for a private-equity firm to provide financial backing.

The news that Geely is serious about bidding for Volvo will come as a surprise after Geely’s chairman, Li Shufu, ruled out a move for the Swedish company last week. It is understood that Geely is looking for a private-equity firm to provide financial backing.

Chinese manfacturer Chery has also been rumoured to have been given the green light to make a bid to purchase Volvo. Dongfeng and Changan are also rumoured to be in talks over a potential bid.

Another rumour emanating from Sweden is that a former chief executive of Volvo is working on takeover plans.