STOCKHOLM, Sweden, June 6, 2005 (PRIMEZONE) -- Due to the pricing pressure in the automotive industry and a shift in product technology, Autoliv Inc. -- the worldwide leader in automotive safety systems -- will initiate negotiations with the trade union to close down its OEA Europe plant in Les Mureaux, west of Paris.
All employees (approximately 100 people) will be offered jobs at other Autoliv plants. Autoliv operates at eight other locations in France.
Despite a 50% sales increase since 2000, Autoliv has closed down seven plants in the United States, Sweden, the Netherlands, and Japan and recently announced a plant closure in the United Kingdom. This continued streamlining of operations along with our move of production to low-labor-cost countries has allowed Autoliv to mitigate the pricing pressure in the automotive industry.
The OEA plant closure will be phased in whereby most of the production will cease at the end of July 2005 and shipments will cease before the end of this year.
Autoliv expects to take a charge of approximately $2 million in the second quarter 2005, mainly related to write-offs of fixed assets. The upcoming negotiations may lead to additional costs associated with the plant closure.
This press release contains statements that are based on the current expectations of the management of the company and are naturally subjected to the uncertainty and to the changes of circumstances. The projected statements connected to the closing of the factory contained in this document imply risk and uncertainties which could cause distances with what is planned.
Inquiries:
Benoit Marsaud, President Autoliv Europe Phone +33-232-89 40 90 Mats Odman, VP Corp. Comm., Autoliv Inc. Phone +46-708-32 09 33
Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with 40,0000 employees in 30 vehicle-producing countries. In addition, the company has development and engineering centers in six countries around the world, including 20 test tracks, more than any other automotive safety supplier. Sales in 2004 amounted to US $6.1 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OM Stockholm Stock Ex-change (SSE: ALIV).
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