Autoliv Invests in China----Increases stake in Chinese JV

(Stockholm, July 24, 2006) – – – Autoliv, the worldwide leader in automotive safety systems, has acquired another 20% of the shares in Nanjing Honggouang-Autoliv Safety Systems Co., Ltd. (NHA) thereby increasing its interest in this Chinese seatbelt company to 70%.

The NHA joint venture in Nanjing has sales of $50 million and 530 employees. The major customers are Peugeot/Citroën, Volkswagen, General Motors, Ford, Mazda, and Cherry. The company was established in 1989 as a 50/50 joint venture to deliver seatbelts to Volkswagen in Shanghai. In 2004, the shareholder agreement was changed and Autoliv received management control over NHA although the ownership interest was unchanged. NHA is one of Autoliv’s nine operations in China. In Shanghai, Autoliv operates one seatbelt plant (producing mainly for export to Australia and Korea), one airbag plant, one steering wheel plant and one weaving plant for seatbelt webbing. In addition, Autoliv recently opened one plant for airbag inflators and one plant for safety electronics. In Changchun, in the northeastern region of China, Autoliv has one seatbelt plant, and one combined seatbelt and airbag plant. In Guangzhou, in southern China, Autoliv recently opened a seatbelt plant supporting mainly Japanese vehicle manufacturers. Last year, passenger vehicle production in China more than doubled from 2002 to 3 million. By 2008, the production is expected to almost double again to exceed 5 million passenger vehicles. Inquiries: Lars Westerberg, President & CEO, Autoliv Inc. Phone +46-8-587 20 620 George Chang, President Autoliv China, Phone +86-21-691-69699