Autoliv to Fully Own Leading China Airbag Company

(Stockholm, Dec. - 17, 2004) - - - Autoliv Inc. (NYSE: ALV), the worldwide leader in automotive safety systems, has completed an agreement to purchase the outstanding 40% shareholding in its Chinese airbag company, Autoliv (Shanghai) Vehicle Safety Systems, which will now become a wholly owned Autoliv subsidiary. The deal to purchase the remaining shares from the partner Shanghai Shengsheng is subject to approval by local authorities and anticipated to be complete in January 2005. Autoliv (Shanghai) was the first company in China to locally produce airbags in April 2002 and remains the market leader. Customers include global joint venture auto assemblers such as General Motors, Ford, Volkswagen, Peugeut/Citroën and local producers such as Changan Automobile and China Brilliance Automobile. The business has expanded rapidly during its first few years and has recently occupied a large new facility in the Jaiding district of Shanghai. A steering wheel production unit will commence production in late 2005 abd future business indicates additional expansion will be required in the near future. Autoliv (Shanghai) will develop and strengthen its engineering and development capacity in order to provide local support to automotive producers in China. Support will also be provided to other Autoliv facilities in China in order to strengthen Autoliv’s position as a key supplier to the burgeoning Chinese automotive production industry. Passenger car production in China for 2003 was 2.02 million, an 80% increase on the previous year. Despite some short term slow down, production in 2004 is likely to exceed 2.3 million. Inquiries: George Chang, President Autoliv China, Tel +86-21-691 69 699 Lars Westerberg, President & CEO, Autoliv Inc. Tel. +46-8-587 20 6200