Autoliv expands in Brazil – increases steering wheel capacity

(Stockholm, June 13, 2011) – – – Autoliv Inc. (NYSE: ALV and SSE: ALIVsdb) – the worldwide leader in automotive safety systems – announced earlier today that it is expanding steering wheel capacity at its location in Taubaté near Sao Paulo.

The expansion will allow Autoliv, which already commands a leading market position in South America, to double its steering wheel molding and assembly capacity in the region to more than one million units as well as expand die-casting capabilities for steering wheel armatures. This capital investment is expected to cost around $9 million USD.

This capacity increase positions Autoliv to take advantage of the expected 25% increase of light vehicle demand in Brazil over the next three years. In addition, a Brazilian law mandating 100% adoption of frontal airbags in light vehicles will be phased in through 2014.

“We are excited about the opportunity to further improve our competitive position,” commented Steve Fredin, President Autoliv Americas. “Many customers prefer to source the steering wheel assembly with the driver airbag to the same tier one supplier, so we believe this expansion is an important enabler to capitalize on this tremendous growth,” added Fredin.

Autoliv began steering wheel operations at the existing Taubaté plant 12 years ago. The plant currently has 77 employees, and expects to increase to nearly 100 employees when the plant reaches full capacity. In total, Autoliv South America employs 1,100 associates at its facilities co-located in Taubaté and produces airbags, seatbelts, seatbelt webbing and steering wheels for the South American market. “Volkswagen, Ford, Peugeot and GM are our largest customers in this market,” stated Tom Hartman, President Autoliv South America.

Recently, Autoliv announced it would also begin manufacturing airbag inflators at the Taubaté location. “Increasing our vertical integration around our core competence improves our overall value proposition,” emphasized Hartman.

Inquiries:

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

Steve Fredin, President Autoliv Americas                          Tel +1 248 475 0423

Tom Hartman, President Autoliv South America                Tel. +55 12 2125 1050

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 46,000 employees in 29 countries. In addition, the Company has ten technical centers in nine countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2010 grew to by 40% to nearly US $7.2 billion. The Company's shares are listed on the New YorkStock 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

Safe Harbour

This report 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, various assumptions, and data available from third parties and apply only as of the date of this report. Our expectations and assumptions 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 as these assumptions are inherently subject to risks and uncertainties such as without limitation, changes in general industry and market conditions, changes in and the successful execution of cost reduction initiatives and market reaction thereto, increased competition, changes in consumer preferences for end products, customer losses, consolidations or restructuring, divestiture of customer brands, fluctuation in vehicle production schedules for which the Company is a supplier, continued uncertainty in program awards and performance, costs or difficulties related to the integration of any new or acquired businesses or technologies, pricing negotiations with customers, product liability, warranty and recall claims and other litigations and customer reactions thereto, possible adverse results of pending or future litigation or infringement claims, legislative or regulatory changes, tax assessments, dependence on customers and suppliers, as well as the risks identified in Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2010 and our most recent quarterly Report on Form 10-Q. 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.