Autoliv Expands Airbag Capacity New Airbag Cushion Plant in Thailand

Autoliv Expands Airbag Capacity

New Airbag Cushion Plant in Thailand

(Stockholm, 31 May, 2011)  -  -  -  To support the rapid growth in
vehicle production and airbag fitment rates in Asia, Autoliv Inc. - the
global leader in automotive safety systems - has begun the construction
of an airbag cushion manufacturing plant in Chonburi, near Bangkok.
Autoliv's existing airbag cushion plant in Thailand opened just two
years ago.

The new facility will have capacity to produce 4.6 million cushions
corresponding to 15% of Autoliv's global manufacturing capacity for “cut
& sewn” textile cushions for airbag systems. Autoliv also produces 20
million highly automated “one-piece-woven” airbag cushions annually.

The new facility in Thailand will occupy 8,000m2 and employ 800 people -
compared to 2,000m2  and 270 employees for the existing plant. 

The total investment cost is USD 9.4 million, not including the building
which will be leased. The new facility will be located 10 kilometers
from Autoliv's current seatbelt facility in Thailand. Initial production
will start in July this year.

The new plant, together with Autoliv's facility in China, will enable
Autoliv to produce 50% of its cut and sewn cushions in-house for the
Asian markets.

The plant, constructed on 30,000m2 of land, has the potential to be
expanded by 6,000m2 to a total capacity in excess of 10 million cushions
if required to support the increasing demand for Autoliv's products.

“This is a critical expansion to ensure that we have enough components
for the rapidly growing demand in Asia for our safety products”,
explained Jan Carlson, President and CEO of Autoliv Inc.

“Light vehicle production in Thailand is expected to grow by 75% between
2010 and 2015. In addition, we have strong export sales to other Asian
markets, underpinned by a burgeoning safety awareness among Asian
vehicle buyers”, Mr. Carlson added.  

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

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 46,000 employees in 29 countries. In
addition, the Company has ten technical centers in nine 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 (http://www.autoliv.com/)

Safe Harbour

This report contains statements that are not historical facts but rather
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (PSLRA). All such statements are based
upon our current expectations, various assumptions, and data available
from third parties and apply only as of the date of this report. Our
expectations and assumptions are expressed in good faith and we believe
there is a reasonable basis for them. However, there can be no assurance
that forward-looking statements will materialize or prove to be correct
as these assumptions are inherently subject to risks and uncertainties
such as without limitation, changes in general industry and market
conditions, changes in and the successful execution of cost reduction
initiatives and market reaction thereto, increased competition, changes
in consumer preferences for end products, customer losses, 
consolidations or restructuring, divestiture of customer brands,
fluctuation in vehicle production schedules for which the Company is a
supplier, continued uncertainty in program awards and performance, costs
or difficulties related to the integration of any new or acquired
businesses or technologies, pricing negotiations with customers, product
liability, warranty and recall claims and other litigations and customer
reactions thereto, possible adverse results of pending or future
litigation or infringement claims, legislative or regulatory changes,
tax assessments, dependence on customers and suppliers, as well as the
risks identified in Item 1A “Risk Factors” in our Annual Report on Form
10-K for the year ended December 31, 2010 and our most recent quarterly
Report on Form 10-Q. Except for the Company's ongoing obligation to
disclose information under the U.S. federal securities laws, the Company
undertakes no obligation to update publicly any forward-looking
statements whether as a result of new information or future events. For
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