STOCKHOLM - VOLVO engineers have launched a bid to buy the loss-making Swedish automaker from US giant Ford to stop it from falling into Chinese hands, a newspaper report said on Saturday.

Business daily Dagens Industri said a group of engineers was behind a consortium registered last month under the name of Jakob AB, adding that it was backed by Volvo Group chief Leif Johanssen.

Dagens Industri said that a predecessor of Johanssen, Roger Holtback, who headed Volvo Cars from 1984-1991, could return if Jakob AB's bid worth 15 billion kronor (S$3 billion) succeeds.

The report, which gave no sources, said that Volvo Cars employees in Sweden and Belgium had been offered the chance to join the consortium with a stake equivalent to two months' pay.

Dagens Industri said that the engineers feared that Volvo would lose its technological edge if it came under Chinese management.

On August 6 the daily reported that Ford was in talks to sell a majority stake in Volvo Cars to China's Geely Automobile.

The paper said the deal would value Volvo Cars at between '20 and 25 billion Swedish kronor.' -- AFP