Makes Joint Venture a fully-owned Subsidiary
(Stockholm, October 29, 2007) - - - Autoliv Inc. (NYSE: ALV and SSE:ALIV), the world-wide leader in automotive safety, has agreed to buy the remaining 50.01% of the shares in its Indian joint venture Autoliv IFB Private Limited. The joint venture will after the acquisition become a wholly-owned subsidiary of Autoliv Inc.
Autoliv IFB Private Limited was formed in 1991 as a joint venture between Autoliv AB, at the time, and IFB Seating Systems Limited in India. Autoliv’s shareholding in the company has remained unchanged just below 50% since the formation of the company.
The company has its main facility for seatbelt assembly, including a test facility with a sled test, in Bangalore. Autoliv India has since the start of the company experienced a steady growth of business. The company’s is today the clear leader in the Indian seatbelt market with a market share of more than 50%. Major customers include Suzuki, Telco and Hyundai and sales totaled approximately $45 millions in 2006.
The Indian production of light vehicles during 2006 was approximately 1.6 million units and it is expected to reach 3.7 million units by 2010. There is an increased interest from the major worldwide OEMs, such as Nissan, General Motors, Toyota and Volkswagen, to locate production to India. Not only to serve the expected increase in the domestic market but also to use India as an export base for global manufacturing. During 2006, non-Indian OEMs produced 0.5 million units (or 31% of total Indian passenger car production) in India, which is expected to increase to 1.7 million units (45% of total production volume) by 2010. Due to the higher export volumes for Europe and other developed markets, the safety market is expected to grow much faster than the underlying vehicle production as these vehicle will have too fulfill the same safety standards and regulations as other cars sold in Europe, North America and Japan.
Inquiries:
Jan Carlson, President and CEO, Autoliv Inc. +46-8-587 20 600
Gunnar Dahlén, President Autoliv Asia Pacific. +66-2659-8510 |
