Volvo suffered a disastrous 2008 with a pre-tax loss of $1.46 billion.
More than half of the loss came in the fourth quarter when Volvo lost $736 million, compared with a breakeven in the fourth quarter of 2007.
In 2007, Volvo made a loss of $164 million. Ford, which owns the Swedish carmaker, is considering selling the brand.
Ford blamed Volvos losses on lower unit sales. The brands global sales in 2008 were 359,000 units, down from 482,000 in 2007.
Unfavorable exchange rates also affected Volvo. Its 2008 sales dropped to $3.3 billion from $5.1 billion the year before.
Meanwhile, the Swedish government said Volvo had applied for loans of about 5 billion Swedish crowns (469 million euros) from the European Investment Bank (EIB).
The government said in a statement that Sweden's debt office would be responsible for negotiating an agreement with the EIB, which would enable the government to guarantee the loans.
Volvo said the money would be used for research into environmental technology.
Ford said in December that a strategic review of Volvo, which includes a possible sale of the carmaker, will take several months to complete.
Until then, Ford said it would continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo in September.
"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results," Ford Motor CEO Alan Mulally said in December.
Ford bought Volvo for 50 billion kronor ($6.45bn) in 1999 following a bidding war with Volkswagen and Fiat.
The brand was profitable at first, but, more recently, it has been in the red.
Volvo, which is based in Gothenburg, Sweden, cut 6,000 jobs last year as part of its efforts to reduce costs.