Autoliv to discontinue manufacturing operations in Turkey

Autoliv (ALV) will gradually discontinue its manufacturing operations in Turkey. Following an 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 Turkey, which includes production of steering wheels, airbags, and seatbelts. This is expected to affect approximately 2,200 employees. Production in Turkey will be moved to Autoliv’s other existing facilities in the EMEA region, with the complete closure of manufacturing operations in Turkey anticipated in the first half of 2028. Autoliv expects to incur a final pre-tax charge of approximately $142M 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 $13M is anticipated from fixed asset and inventory write-offs. Cash charges of approximately $129M 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.