Autoliv to Discontinue Manufacturing Operations in Türkiye

Rhea-AI Summary

Autoliv (NYSE: ALV) will gradually discontinue manufacturing operations in Türkiye as part of EMEA capacity alignment, moving production of steering wheels, airbags, and seatbelts to other EMEA facilities. The move affects ~2,200 employees and is expected to complete in the first half of 2028. Autoliv expects a final pre-tax charge of approximately $142 million, with a $13 million non-cash write-off and ~$129 million of cash charges, mostly recorded in Q2 2026.

Positive

• Customer-facing operations will be retained in Türkiye
• Production capacity shifted to existing EMEA facilities
• Capacity alignment aims to optimize long-term competitiveness

Negative

• Approximately 2,200 employees affected by the closure
• Final pre-tax charge of approximately $142 million, majority in Q2 2026
• Non-cash write-offs of $13 million and cash charges of ~$129 million
• Complete manufacturing closure in Türkiye expected in H1 2028

Market Context

This announcement outlines Autoliv’s plan to close manufacturing operations in Türkiye by the first ...

Analysis

This announcement outlines Autoliv’s plan to close manufacturing operations in Türkiye by the first half of 2028, affecting about 2,200 employees and generating a pre-tax charge of $142 million, mostly in cash. The move reallocates production within EMEA while Autoliv maintains customer-facing operations locally. With 2025 sales of $10.8 billion, a presence in 25 countries, and 64,000 employees, investors may watch how cost savings, execution of transfers, and demand trends balance these upfront charges.

Key Figures

Pre-tax charge: $142 million Non-cash charge: $13 million Cash charges: $129 million +5 more

8 metrics

Pre-tax charge $142 million Capacity alignment in EMEA region

Non-cash charge $13 million Fixed asset and inventory write-offs

Cash charges $129 million Severance, retention and related costs

Employees affected 2,200 employees Closure of manufacturing operations in Türkiye

FX rate assumption 53 Turkish Lira per dollar Used for severance and retention cost calculations

2025 sales $10.8 billion Company sales in 2025

Employees worldwide 64,000 employees Global workforce size

Countries of operation 25 countries Geographical footprint

Key Terms

forward-looking statements, safe harbor, eu market abuse regulation

3 terms

forward-looking statements regulatory

"This report contains statements that are not historical facts but rather forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

safe harbor regulatory

"we claim the protection of the safe harbor for forward-looking statements contained in the"

Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.

eu market abuse regulation regulatory

"information that Autoliv, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation"

A set of EU-wide rules that prevent cheating in financial markets by banning insider trading, market manipulation, and misleading disclosure; it also requires timely public release of key company information so everyone can play on a level field. For investors, it reduces the risk that prices are driven by secret deals or false signals, making markets fairer and more reliable for deciding when to buy or sell — like referees enforcing fair play in a game.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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STOCKHOLM, May 8, 2026 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) (SSE: ALIVsdb), the worldwide leader in automotive safety systems, continues its strategy to align production capacity with future EMEA market requirements. As part of this strategy, Autoliv will gradually discontinue its manufacturing operations in Türkiye. 

The automotive industry is experiencing structural shifts and unprecedented transformation on a global scale. While Autoliv continues to perform strongly worldwide, evolving market dynamics require ongoing evaluation and optimization of our manufacturing footprint to ensure long-term competitiveness and operational sustainability. Following a comprehensive and careful assessment of its regional operations, Autoliv has decided to implement capacity alignments within the EMEA region.

Management has determined that manufacturing capacity in the EMEA region exceeds future demand. As part of its capacity alignment, Autoliv will gradually discontinue its manufacturing operations in Türkiye, which includes production of steering wheels, airbags, and seatbelts. This is expected to affect approximately 2,200 employees. Production in Türkiye will be moved to Autoliv's other existing facilities in the EMEA region, with the complete closure of manufacturing operations in Türkiye anticipated in the first half of 2028.

Autoliv expects to incur a final pre-tax charge of approximately $142 million for this capacity alignment. The majority of this charge is expected to be recorded in the second quarter of 2026.

A non-cash charge of $13 million is anticipated from fixed asset and inventory write-offs. Cash charges of approximately $129 million are primarily for severance and employee retention costs and immaterial amounts for environmental related expenses, equipment decommissioning, and contractual releases. Severance and employee retention costs are calculated using a weighted-average, projected foreign exchange rate of 53 Turkish Lira per dollar.

"As market conditions shift, we are continuously optimizing Autoliv's manufacturing footprint in the EMEA region to better align our capacity with future demand and strengthen our long-term competitiveness. We recognize that this change is difficult for affected employees and we will approach the situation in a transparent and respectful manner," says Magnus Jarlegren, President Autoliv EMEA.

Autoliv will maintain a sharp focus on supporting its customers and will retain customer-facing operations in Türkiye. Autoliv remains dedicated to meeting its established standards for reliably delivering high-quality safety systems and conducting its activities in accordance with Autoliv's global standards for safety, integrity and operational excellence.

Inquiries: 

Investors & Analysts:
Anders Trapp, Tel +46 709 578 171, Henrik Kaar, Tel +46 709 578 114

Media: media@autoliv.com 

Gabriella Etemad, Tel +46 70 612 64 24, Emelie Ericson, Tel +46 70 957 81 35

This information is information that Autoliv, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication by Emelie Ericson at 08:55 CET on May 8, 2026.

About Autoliv

Autoliv, Inc. (NYSE: ALV) (NASDAQ Stockholm: ALIV.sdb) is the worldwide leader in automotive safety systems. Through our group companies, we develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels for all major automotive manufacturers in the world, as well as mobility safety solutions, such as commercial vehicles and electrical safety solutions. At Autoliv, we challenge and re-define the standards of mobility safety to sustainably deliver leading solutions. In 2025, our products saved approximately 40,000 lives and reduced around 600,000 injuries.

We have operations in 25 countries, and we drive innovation, research, and development at our 13 technical centers. Our 64,000 employees are passionate about our vision of Saving More Lives and quality is at the heart of everything we do. Sales in 2025 amounted to $10.8 billion. For more information go to www.autoliv.com.

Safe Harbor Statement

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. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and data available from third parties. 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 such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including general economic conditions and fluctuations in the global automotive market. 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 Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any such statements in light of new information or future events, except as required by law.

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SOURCE Autoliv

FAQ

Why is Autoliv (ALV) discontinuing manufacturing operations in Türkiye?

Autoliv says the decision follows a capacity alignment to match future EMEA demand and optimize its footprint. According to Autoliv, evolving market dynamics and excess regional capacity prompted moving production to other EMEA facilities to support long-term competitiveness.

How many employees will be affected by Autoliv's Türkiye closure (ALV)?

About 2,200 employees are expected to be affected by the gradual discontinuation. According to Autoliv, the company will manage the process transparently while retaining customer-facing operations in Türkiye and relocating manufacturing to other EMEA sites.

What is the financial impact of Autoliv's Türkiye shutdown on ALV?

Autoliv expects a final pre-tax charge of approximately $142 million, mostly in Q2 2026. According to Autoliv, this includes a $13 million non-cash write-off and ~$129 million of cash costs for severance and related items.

When will Autoliv (ALV) complete the closure of its Türkiye manufacturing operations?

The company anticipates complete closure of manufacturing operations in Türkiye in the first half of 2028. According to Autoliv, production will be moved gradually to other existing EMEA facilities during this period.

Will Autoliv (ALV) keep any operations in Türkiye after the manufacturing exit?

Yes. Autoliv will retain customer-facing operations in Türkiye while discontinuing manufacturing. According to Autoliv, customer support and market-facing activities will continue to meet delivery and quality standards locally.