Autoliv Expands in Brazil Begins construction of airbag inflator facility

(Stockholm, November 8, 2010) --- In response to a new Brazilian vehicle safety law, Autoliv Inc. (NYSE: ALV and SSE: ALIV) – the worldwide leader in automotive safety systems – has begun the construction of an airbag inflator plant at its Taubaté location near São Paulo. The new law applies a “phased in” approach starting in 2011, requiring all new vehicles introduced to have a driver and passenger airbag by 2013. By 2014, all vehicles sold in Brazil must be equipped with frontal airbags.

Gas generators or inflators–the devices used to inflate an airbag–are currently imported from Autoliv’s plants in the United States and Europe. However, demand in Brazil is expected to grow sharply during the next few years, necessitating localized production for this component which typically makes up half the cost of an airbag. 

The new facility will begin manufacturing airbag inflators mainly for driver and passenger side protection, and expects to increase its production for side-impact and rollover applications as consumer demand drives the local market.  The cost for the building amounts to approximately 8 million U.S. dollars and provides 2,100 square meters (22,600 sq. ft.) of floor space for inflator production when fully utilized. 

The new plant will increase Autoliv’s global inflator manufacturing capacity by roughly 7%.  Autoliv currently produces inflators in six countries (China, France, Japan, Romania, Sweden and the United States) and accounts for more than 35% of the global inflator market.  The customers of these plants include not only Autoliv’s own airbag assembly plants but also assembly plants of other airbag manufacturers.

Cars continue to become more affordable in the Brazilian market and the number of potential car buyers is experiencing a marked increase.  As a result, Brazil is on track to overtake Germany as the world’s fourth-largest vehicle market this year.

Inquiries:
Jan Carlson, President & CEO, Autoliv Inc.                                         Tel. +46-8 587 20 600

Mike Ward, President Autoliv Americas                                              Tel. +1-801 625 824

About Autoliv

Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has 80 facilities with close to 43,000 employees in 28 vehicle-producing countries. In addition, the Company has technical centers in eleven countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2010 are expected to grow to by nearly 40% to almost US $7.2 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.

 

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This release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). All such statements are based upon our current expectations and various assumptions, and apply only as of the date of this report. Our expectations and beliefs are express­ed in good faith and we believe there is a reasonable basis for them. How­ever, there can be no assurance that forward-looking statements will materialize or prove to be correct. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation, changes in general industry and market conditions, increased competition, changes in consumer preferences for end products, customer losses and changes in regulatory conditions, customer bankruptcies, consolidations or restructuring, divestiture of customer brands, the economic outlook for the Company’s markets, fluctuation in vehicle production schedules for which the Company is a supplier, continued uncertainty in program awards and performance, pricing negotiations with customers, product liability, warranty and recall claims and other litigations, possible adverse results of pending or future litigation or infringement claims, legislative or regulatory changes, dependence on customers and suppliers, as well the risks identified in Item 1A “Risk Factors” in this report and the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2008.  Except for the Company’s ongoing obligation to disclose information under the U.S. federal securities laws, the Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information or future events. For any forward-looking statements con­tained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the PSLRA.

About Us

Autoliv, Inc. is the worldwide leader in automotive safety systems, and through its subsidiaries develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has more than 66,000 associates in 27 countries. In addition, the Company has 12 technical centers around the world, with 19 test tracks. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on Nasdaq Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.

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