What it might be? One or more oscillators failing due to component value drift, bad coupling caps between stages, IF mixer failed, blown speaker voice coil, bad volume pot, oxidation of contacts in the relay or the external speaker jack, oxidation of contacts in the channel selector or mode switch, rodents ate the wires inside, one or more missing voltages from the internal power supply, dead 7.8 MHz filter, dead TR1, or the squelch is just cranked up.
If you have access to the service data, try starting with an alignment and see what fails to align. It's as good a starting point as any when you're not sure what the problem is. And if you don't find anything your radio is properly aligned when you're done. Still broken, perhaps, but properly aligned all the same.