Autoliv Continues Its Consolidation Strategy

Autoliv Continues Its Consolidation Strategy

(Stockholm - August 8, 2007)—Autoliv North America, a division of Autoliv Inc.,
the world's largest supplier of automotive safety systems, today announced plans
to close its Madisonville Kentucky plant, which produces seat belt products for
the North American market.  Current operations at this facility will be moved to
existing plants throughout North America.  The closure will impact roughly 220
associates currently employed at the Madisonville plant.

Earlier this year, Autoliv announced plans to move high-volume seat belt
production lines from the Madisonville plant to the Company's seat belt plants
in Mexico to take advantage of lower costs for labor-intensive operations. 
Today's announcement extends this planned phase-out to encompass the plant's
cross-dock operations and its low-volume service parts production. 

“After examining existing open floor space in other facilities, and our
competitive position, we regrettably have concluded that we must close the
Madisonville facility,” said Wendell Lane, Vice President of Seat Belt
Operations for Autoliv North America.  “The phase out is a difficult but
necessary step in our overall plan to stay competitive and create value for our
customers and shareholders.  We will work with all of the Autoliv employees
affected by this decision to help them through the transition and closure.”

Although the original plan for phasing out high-volume production lines was
scheduled to take 18 months, the Company shortened this timeframe to 12 months
in order to more effectively balance rapid shifts in technology and customer mix
with aggressive cost cutting and reduced spending.  Service parts for seat belt
products will be consolidated with airbag service production in an existing
Autoliv plant in Utah, and Autoliv will restructure how it consolidates and
distributes component parts, eliminating the need for the current distribution
center.

The Madisonville plant, which began production in 2001, currently manufactures a
variety of serial production and service production seat belts for the
automotive industry. The gradual phase-out of the facility allows an orderly
transition time for Autoliv to work with displaced employees.

Inquiries: 
Wendell Lane, Vice President of Seat Belt Operations - Autoliv North America  
(248) 475-0415
Alison Sanderson, Senior Manager of Human Resources, Seatbelts - Autoliv North
America   (248) 475-0410
Kris Bessinger, Senior Director of Human Resources - Autoliv North America  
(801) 625-8213