Autoliv Expands in Brazil Begins construction of airbag

Autoliv Expands in Brazil

Begins construction of airbag inflator facility

(Stockholm, November 8, 2010) --- In response to a new Brazilian vehicle
safety law, Autoliv Inc. (NYSE: ALV and SSE: ALIV) - the worldwide
leader in automotive safety systems - has begun the construction of an
airbag inflator plant at its Taubaté location near São Paulo. The new
law applies a “phased in” approach starting in 2011, requiring all new
vehicles introduced to have a driver and passenger airbag by 2013. By
2014, all vehicles sold in Brazil must be equipped with frontal airbags.

Gas generators or inflators-the devices used to inflate an airbag-are
currently imported from Autoliv's plants in the United States and
Europe. However, demand in Brazil is expected to grow sharply during the
next few years, necessitating localized production for this component
which typically makes up half the cost of an airbag.

The new facility will begin manufacturing airbag inflators mainly for
driver and passenger side protection, and expects to increase its
production for side-impact and rollover applications as consumer demand
drives the local market. The cost for the building amounts to
approximately 8 million U.S. dollars and provides 2,100 square meters
(22,600 sq. ft.) of floor space for inflator production when fully
utilized.

The new plant will increase Autoliv's global inflator manufacturing
capacity by roughly 7%. Autoliv currently produces inflators in six
countries (China, France, Japan, Romania, Sweden and the United States)
and accounts for more than 35% of the global inflator market. The
customers of these plants include not only Autoliv's own airbag assembly
plants but also assembly plants of other airbag manufacturers.

Cars continue to become more affordable in the Brazilian market and the
number of potential car buyers is experiencing a marked increase. As a
result, Brazil is on track to overtake Germany as the world's
fourth-largest vehicle market this year.

Inquiries:
Jan Carlson, President & CEO, Autoliv Inc.
Tel. +46-8 587 20 600

Mike Ward, President Autoliv
Americas Tel. +1-801 625
824