STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
In response to many questions about the effect of the Japanese earthquake, Autoliv Inc. (NYSE:ALV)(STO:ALIVSDB) – the global leader in automotive safety systems – provides the following summary of the situation for its Japanese operations.
Autoliv has four manufacturing facilities in Japan and four offices with nearly 1,700 associates.
Fortunately, none of them have been injured by the earthquake, and only one of the facilities suffered minor damages. Also this plant can be brought back into operations when customer assembly plants resume their production. In addition, according to a preliminary supplier status assessment, Autoliv’s suppliers in Japan should also be ready to resume production.
As a result, the financial impact on Autoliv from the earthquake is expected to be small. The impact of lost production will depend on when customers will resume vehicle production, and if the customers will try to recover any lost production during the current production suspension.
The Japanese facilities account for 11% of Autoliv’s global production, and Autoliv accounts for approximately 20% of the Japanese market for airbags, steering wheels and seatbelts.
The infrastructure in the country remains potentially unstable and the ability to ship parts efficiently remains to be confirmed.
Japanese operations
Autoliv’s main facility is located in Tsukuba, 50 km northeast of Tokyo. It produces airbags and seatbelts and has a technical center with a crash test facility. Although the facility only suffered minor damages, the infrastructure around the plant and the electric power supply are unstable.
Autoliv has a steering wheel plant in Atzugi, 45 km southwest of Tokyo. In this area, electricity is shut down temporarily according to a rolling 12-hour schedule. Apart from these restrictions, the plant is operational. This plant also experienced some telecommunication problems during the earthquake.
Inflators for the airbag systems are produced in Taketoyo, near Nagoya. This plant is also in an area with electricity conservation schedules.
Autoliv has also a small plant in Hiroshima which produces airbag and steering wheel assemblies for customers in Western Japan. This plant is not subject to any production restrictions.
About Autoliv
Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has 80 facilities with more than 43,000 employees in 29 countries. In addition, the Company has technical centers in eleven countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2010 grew to by 40% to nearly US $7.2 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.
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