Autoliv (NYSE: ALV) to exit Türkiye manufacturing and book $142M cost
Rhea-AI Filing Summary
Autoliv, Inc. has approved a plan to close its manufacturing plants in Türkiye, which produce steering wheels, airbags, and seatbelts, as part of a wider EMEA capacity alignment. The company expects a final pre-tax charge of approximately $142 million, mostly in the second quarter of 2026, including a $13 million non-cash write-off and about $129 million of cash costs mainly for severance and employee retention. Around 2,200 employees in Türkiye will be affected, with production moved to other EMEA facilities, and the full closure anticipated in the first half of 2028. Autoliv estimates an annual pre-tax benefit of about $40 million from 2027, fully realized in fiscal 2028. The company also reported that stockholders elected nine directors, approved 2025 executive compensation on an advisory basis, and ratified Ernst & Young AB as auditor. Separately, the board declared a second-quarter 2026 dividend of $0.87 per share for common stock and Swedish Depository Receipts, payable in June 2026 to holders of record in May.
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Insights
Autoliv books a sizable restructuring charge now for modest future savings.
Autoliv plans to close its Türkiye manufacturing plants after determining EMEA capacity exceeds expected demand. The company anticipates a final pre-tax charge of $142 million, mostly in Q2 2026, including $13 million in non-cash write-offs and about $129 million in cash costs tied mainly to severance and retention.
The restructuring is expected to reduce Autoliv’s workforce in Türkiye by roughly 2,200 employees and shift production to other EMEA sites. Management estimates an annual pre-tax benefit of $40 million beginning in 2027 and fully realized in fiscal 2028, suggesting a multi‑year payback period based on disclosed figures alone.
Alongside the restructuring, the company is maintaining capital returns via a quarterly dividend of $0.87 per share for Q2 2026. Future filings may clarify how the restructuring charges and anticipated savings flow through margins and cash generation once the closures progress toward the planned completion in the first half of 2028.
8-K Event Classification
Key Figures
Key Terms
capacity alignments financial
Material Impairments regulatory
Swedish Depository Receipts financial
non-binding, advisory resolution regulatory
EU Market Abuse Regulation regulatory
forward-looking statements regulatory
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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Item 2.05 Costs Associated with Exit or Disposal Activities.
On May 8, 2026, Autoliv, Inc. (the “Company”) management approved a plan to close its manufacturing plants in Türkiye, which manufacture steering wheels, airbags, and seatbelts. Autoliv expects to incur a final pre-tax charge of approximately $142 million to implement these capacity alignments, the majority of which is expected to be recorded in the second quarter of 2026, of which $13 million is expected to be a non-cash charge 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.
Management determined that manufacturing capacity in the EMEA region exceeds future demand. As a result of the closures, Autoliv expects to realize an estimated pre-tax benefit of $40 million annually, beginning in 2027 but fully realized in fiscal year 2028. In addition, Autoliv estimates that there will be a reduction of approximately 2,200 employees in Türkiye upon completion. Severance and employee retention costs are calculated using a weighted-average, projected foreign exchange rate of 53 Turkish Lira per dollar.
A press release dated May 8, 2026 announcing the discontinuation of manufacturing operations in Türkiye is filed as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.05, and oral statements made regarding the subjects of Item 2.05, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act. Such forward-looking statements include those that address activities, events or developments that the Company, Inc. or its management believes or anticipates may occur in the future such as the discontinuation of manufacturing in Türkiye, plant closures, and associated headcount reduction as well as the expected amount of certain pre-tax charges, the anticipated timing of such pre-tax charges, and the realization of the projected Turkish Lira to dollar exchange rate. All forward-looking statements are based upon our current expectations, various assumptions and/or 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. In some cases, you can identify these statements by forward-looking words such as “estimates”, “expects”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “may”, “likely”, “might”, “would”, “should”, “could”, or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words. 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: general global and regional economic conditions, including the impact of inflation; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation, and distribution delays or interruptions; supply chain disruptions, and component shortages specific to the automotive industry or the Company; potential changes to beneficial free trade agreements and regulations, such as the United States-Mexico-Canada Agreement; changes in geopolitical and other economic and political conditions or developments, including inflation, changes trade policies, tariff regimes, and other developments in and by countries in which we do business that could materially impact supply chains, margins, access to capital, or overall business performance; political stability or geopolitical conflicts; changes in general industry or market conditions, including regional economic growth or decline; changes in and the successful execution of our capacity alignment, restructuring, cost reduction, and efficiency initiatives and the market reaction thereto; loss of business from increased competition; volatility or increases in raw material, fuel, and energy costs; changes in consumer and customer preferences for end products; loss of customers or sales; legislative or regulatory changes; customer bankruptcies, consolidations or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers, including inflation and tariff compensations; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims, and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of
antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments or results of tax audits by governmental authorities and changes in our effective tax rate; dependence on key personnel; our ability to meet our sustainability targets, goals and commitments; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. 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 forward-looking statements in light of new information or future events, except as required by law.
Item 2.06 Material Impairments.
The information contained in Item 2.05 above is incorporated herein by reference.
Item 5.07 Submission of Matters to a Vote of Security Holders.
On May 7, 2026, the Company held its 2026 Annual Meeting of Stockholders (the “Annual Meeting”), where a total of 74,862,203 shares were represented in person or by valid proxy. The proposals presented at the Annual Meeting are described in detail in the Company’s Definitive Proxy Statement for the Annual Meeting, which was filed with the Securities and Exchange Commission on March 25, 2026. At the Annual Meeting, the Company’s stockholders took the following actions:
Election of Directors
Mr. Mikael Bratt, Ms. Laurie Brlas, Mr. Jan Carlson, Mr. Leif Johansson, Ms. Adriana Karaboutis, Mr. Frédéric Lissalde, Dr. Xiaozhi Liu, Mr. Gustav Lundgren, and Mr. Thaddeus Senko were each elected to the Company’s board of directors (the “Board”) for a one-year term until the 2027 annual meeting of stockholders.
The votes cast were as follows:
Mr. Mikael Bratt: Ms. Laurie Brlas: Mr. Jan Carlson: Mr. Leif Johansson: Ms. Adriana Karaboutis: Mr. Frédéric Lissalde: Dr. Xiaozhi Liu: Mr. Gustav Lundgren: Mr. Thaddeus Senko: |
53,232,327 votes for, and 504,185 withheld. 53,208,971 votes for, and 527,541 withheld. 51,816,134 votes for, and 1,920,378 withheld. 51,643,917 votes for, and 2,092,595 withheld. 53,348,757 votes for, and 387,755 withheld. 52,993,485 votes for, and 743,027 withheld. 53,021,666 votes for, and 714,846 withheld. 53,168,487 votes for, and 568,025 withheld. 53,318,316 votes for, and 418,196 withheld. |
Advisory vote to approve executive compensation
52,468,386 votes for, 863,561 votes against, and 404,565 abstentions.
Ratification of appointment of independent registered public accountants
48,356,171 votes for, 5,916,333 votes against, and 336,037 abstentions.
A copy of the press release dated May 8, 2026 regarding the results of the Annual Meeting is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 8.01 Other Events.
Second Quarter Dividend
In a press release dated May 6, 2026, the Company announced that the Board declared a quarterly dividend of $0.87 cents per share for the second quarter of 2026. The dividend will be payable on Monday, June 8, 2026 to the holders of Company common stock and on Tuesday, June 9, 2026 to the holders of the Company's Swedish Depository Receipts. The dividend payments will be made to holders of record on the close of business on Wednesday, May 20, 2026.
A copy of the press release dated May 6, 2026 regarding the second quarter dividend is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits
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Description |
99.1 |
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Press Release dated May 6, 2026 |
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99.2 |
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Press Release dated May 7, 2026 |
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99.3 |
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Press Release dated May 8, 2026 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AUTOLIV, INC. |
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/s/ Anthony J. Nellis |
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Anthony J. Nellis |
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Executive Vice President, Legal Affairs, General Counsel and Secretary |
Date: May 11, 2026
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PRESS RELEASE
Exhibit 99.1
Autoliv Declares Quarterly Dividend
(Auburn Hills, Michigan, USA, May 6, 2026) – Autoliv, Inc. (NYSE: ALV and SSE: ALIV.sdb), the worldwide leader in automotive safety systems, today announced that its Board of Directors has declared a quarterly dividend of 87 cents for the second quarter of 2026.
To holders of record on the close of business on Wednesday, May 20, the dividend will be payable on:
The ex-date will be:
Inquiries:
Investors & Analysts: Anders Trapp, Tel +46 (0)709 578 170
Investors & Analysts: Henrik Kaar, Tel +46 (0)709 578 114
Media: Gabriella Etemad, Tel +46 (0)706 126 424
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 Henrik Kaar at 4:10 p.m. ET on February 19, 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
Autoliv Inc. Box 70381, 107 24 Stockholm, Sweden Visiting address: World Trade Center, Klarabergsviadukten 70, D5, 111 64 Stockholm Phone: +46 (0)8 587 20600 E-mail: gabriella.etemad@autoliv.com
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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.
Autoliv Inc. Box 70381, 107 24 Stockholm Visiting address: World Trade Center, Klarabergsviadukten 70, D5, 111 64 Stockholm Phone: +46 (0)8 58720600
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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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PRESS RELEASE
Exhibit 99.3
Autoliv to Discontinue Manufacturing Operations in Türkiye
(Stockholm, Sweden, May 8, 2026) – Autoliv, Inc. (NYSE: ALV and 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.