Autoliv and Nissin Kogyo form Autoliv-Nissin Brake Systems
April 01 2016 - 2:25AM
Business Wire
Regulatory News:
Autoliv, Inc. (NYSE: ALV and SSE: ALIVsdb), the worldwide leader
in automotive safety systems, on March 31, 2016 finalized its joint
venture with Nissin Kogyo (TSE: 7230.T) to form Autoliv-Nissin
Brake Systems (ANBS). The joint venture is an important milestone
in Autoliv’s strategy to be the leader in safety systems for the
future car, well integrated with autonomous driving.
ANBS combines the current brake control business of Autoliv with
a “carve-out” of Nissin Kogyo’s automotive braking business. ANBS
joins Nissin Kogyo’s world leading expertise and technology in
brake control and actuation systems with Autoliv’s global reach and
customer base to create a global competitive offering competing in
the growing global brake control systems market. The joint venture
will also further strengthen Autoliv’s role as a leading system
supplier for autonomous vehicles.
ANBS will be part of Autoliv’s Electronics business segment
(consisting of passive safety electronics products, ADAS products
and brake control systems). Autoliv owns 51% of the joint venture
and has management and operational control. Autoliv will
consolidate 100% of ANBS in its financial statements. Nissin
Kogyo’s 49% share of the joint venture’s net income will be treated
as a minority interest.
“Today is an important day for Autoliv. The formation of
Autoliv-Nissin Brake Systems will allow us to offer state of the
art brake control and actuation systems to auto manufacturers
around the world. It will further enhance our role as the leading
safety system supplier for the future car, well integrated with
autonomous driving,” said Autoliv Chairman, President & CEO Jan
Carlson.
Autoliv purchased 51% of the joint venture for JPY 29.7 billion
(approximately USD 264 million, using March 31stexchange rates),
including pre-closing adjustments and subject to customary
post-closing adjustments. ANBS sales and operating margin for the
nine month period April-December 2016 is expected to be slightly
lower than initially communicated, sales are now expected to be in
the range of USD 400-450 million for the same nine month
period.
Beginning with the second quarter 2016 earnings release Autoliv
plans to disclose information about ANBS in line with the other
units (ADAS products and passive safety electronics products) in
the Electronics business segment.
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 close to 80 facilities with more than
64,000 employees in 27 countries. In addition, the Company has 20
technical centers in nine countries around the world, with 20 test
tracks, more than any other automotive safety supplier. Sales in
2015 amounted to about US $9.2 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.
About Nissin Kogyo
Founded in 1953 with creating advanced value for the environment
and safety as its core themes, Nissin Kogyo is a global developer
and manufacturer of comprehensive brake systems to the OEM
automotive and motorcycle markets. Nissin Kogyo has more than
10,000 employees at 22 facilities in 10 countries around the world,
with reported net sales of 220.9 billion yen in the 2013 fiscal
year. Nissin Kogyo’s shares are listed on the First Section of the
Tokyo Stock Exchange (7230.T). For more information about Nissin
Kogyo, please visit the company website at
www.nissinkogyo.co.jp/en.
Safe Harbor Statement
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. Such
forward-looking statements include those that address activities,
events or developments that Autoliv, Inc. or its management
believes or anticipates may occur in the future. All
forward-looking statements, including the anticipated revenue of
the joint venture, the consolidation of the joint venture for
accounting purposes, the expansion of the joint venture’s business
and its anticipated product offering and other estimates of future
operating performance or financial results, are based upon our
current expectations, various assumptions and data available from
third parties. 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 such forward-looking
statements will materialize or prove to be correct as
forward-looking statements are inherently subject to known and
unknown risks, uncertainties and other factors which may cause
actual future results, performance or achievements to differ
materially from the future results, performance or achievements
expressed in or implied by such forward-looking statements.
Numerous risks, uncertainties and other factors may cause actual
results to differ materially from those set out in the
forward-looking statements. The Company undertakes no obligation to
update publicly or revise any forward-looking statements in light
of new information or future events. For any forward-looking
statements contained in this or any other document, we claim the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995,
and we assume no obligation to update any such statement.
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AutolivThomas J�nsson, +46 (0)8 58 72 06 27Group Vice President
Communications
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