The Swedish government is set to guarantee 90 per cent of a 5-billion-kronor (A$900 million) loan for Volvo Cars with the remaining 10 per cent to be secured from other sources.
The government's stance toward Volvo, which is currently owned by Ford, appeared more benevolent compared to Swedish rival, General Motors owned SAAB.
"Unlike GM, Ford has clearly stated they will take full ownership responsibility and guarantee capital flows to Volvo Cars until they have found a new owner for Volvo Cars," Sweden's state secretary Joran Hagglund said.
The Swedish government has previously said it would not take over ownership of SAAB.
Ford said in December that a strategic review of Volvo, which includes a possible sale, will take several months to complete.
Volvo Cars has been owned by Ford since 1999 and employs 24,000 people worldwide. 17,000 of those in Sweden.
SAAB has been under the GM banner since 2000 though the brand's interest stretch back another decade. SAAB employs some 4000 people in Sweden.