Ford Motor Co. is moving ahead with a plan to sell its Volvo brand as the auto maker braces for a dismal fourth-quarter earnings report due Thursday.

Ford has been shopping Volvo for a year or so as part of a strategy to raise cash, shed niche nameplates and focus resources on its flagship Ford brand. The upscale Swedish make, whose sales declined over the past few years, has drawn little interest so far from major global auto makers.

But...