#Sweden #Stockholm #Türkiye #Autoliv #EMEA

Autoliv to End Operations in Türkiye

In a significant move aimed at optimizing its production footprint, Autoliv, Inc., a leading company in automotive safety systems, has announced its decision to gradually discontinue manufacturing operations in Türkiye. This strategic alignment is expected to influence approximately 2,200 employees as the company adjusts to meet future demands in the EMEA (Europe, the Middle East, and Africa) market.

Strategic Need for Change

The automotive sector is witnessing unprecedented transformations globally, prompting companies like Autoliv to reassess their manufacturing capacities. Despite robust performance around the world, evolving market conditions require companies to adapt and optimize their operations to maintain long-term competitiveness. Autoliv's management determined that the current production capacity in the EMEA region exceeds anticipated future market demand, leading to this pivotal decision.

Manufacturing in Türkiye, which includes steering wheels, airbags, and seatbelts, will be gradually phased out, with the complete shut down of operations expected by the first half of 2028. The transition will see production shifted to existing facilities within the EMEA region, thereby allowing Autoliv to maintain customer service and support in Türkiye, albeit without local manufacturing.

Financial Implications

The closure of the Turkish facilities is not without financial ramifications. Autoliv anticipates a final pre-tax charge of approximately $142 million due to this initiative. Most of this cost is set to be recognized in the second quarter of 2026. It will encompass a non-cash charge of $13 million from fixed asset and inventory write-offs, while cash charges, approximately $129 million, will principally cover severance and employee retention costs, along with minor amounts directed towards environmental expenses, equipment decommissioning, and contractual releases.

The severance costs will be calculated using a weighted average projected foreign exchange rate of 53 Turkish Lira per dollar, highlighting the financial intricacies involved in the transition.

Communication and Transparency

Recognizing the challenges faced by the employees affected by this closure, Magnus Jarlegren, President of Autoliv EMEA, emphasizes the company’s commitment to approaching the situation with transparency and respect. “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,” he stated.

While the manufacturing operations will cease, Autoliv remains dedicated to supporting its customers in Türkiye. The company ensures that it will uphold its standards for high-quality safety systems and ethical conduct. Autoliv continues to focus on delivering reliable automotive safety solutions and enhancing operational excellence as its fundamental pillars of success.

Looking Ahead

The decision to discontinue manufacturing operations in Türkiye marks a critical phase in Autoliv's strategic realignment within the automotive landscape. This move not only reflects the company’s ongoing commitment to adapting to market changes but also underlines its broader mission of saving more lives through enhanced automotive safety technologies. Established in 1997, Autoliv has saved approximately 40,000 lives and prevented around 600,000 injuries annually as a result of its life-saving products.

With operations in 25 countries and a workforce of 64,000 dedicated employees, Autoliv continues to drive innovation and development through its technical centers, ensuring that it remains at the forefront of the automotive safety market. As the global dynamics shift, Autoliv stands ready to meet the challenges ahead while pursuing its objective of sustainable excellence in mobility safety solutions.