FRANKFURT, Germany,
Sept. 14, 2017 /PRNewswire/ --
Autoliv, Inc. (NYSE: ALV and SSE: ALIVsdb), the worldwide leader
in automotive safety systems, today announced that its Board of
Directors has instructed management to conduct a strategic review
of its operating structure with the intent to create separate
companies of its current business segments, Passive Safety and
Electronics.
The intent is to create two publicly traded companies capable of
addressing two distinct, growing markets with leading product
offerings and thereby create additional value for shareholders,
customers and other stakeholders as compared to the current,
combined structure of Autoliv. The strategic review process will
evaluate this and other options. Although the strategic review has
been initiated there is no guarantee that the review will result in
any transaction, including a separation or listing of the
businesses.
"The current operational model has served Autoliv very well,
creating tremendous value for its shareholders and other
stakeholders since the initial listing on the Stockholm stock exchange in 1994. Over the
last decade our Electronics business has grown and matured next to
our world leading Passive Safety business and today we have two
distinct, successful businesses, each with its own unique business
drivers. We believe it's time to let them both individually
maximize their potential," said Jan
Carlson, Chairman, President and CEO of Autoliv.
Electronics consists of Active Safety Products (automotive
radars, cameras with driver assist systems, night vision systems
and positioning systems), Restraint Control and Sensing and Brake
Systems. Its market (particularly in active safety towards
autonomous driving) is characterized by a high pace of change and
growth which requires an agile innovation and partnering model as
well as significant upfront investments to capture future growth.
It is estimated that the total available market for Safety
Electronics will grow from around $20
billion in 2017 to more than $40
billion in 2025. The objective for Electronics is to capture
a significant portion of that growth while continuously improving
the profitability of the unit.
Electronics is one of the leaders in Active Safety today with
one of the broadest and most advanced product portfolios in the
industry. Over the last two years Electronics has further
positioned itself to be a major player in automotive electronics,
including the competitiveness of the product portfolio, becoming a
qualified supplier with a high number of OEM's for active safety
and entering into important partnerships with companies like Volvo
Cars (Zenuity), NVIDIA and LiDAR experts Velodyne for the next
generation of highly automated cars. In 2016, Electronics sales
were $2.216 billion, with a target to
reach $3 billion in revenue in
2020.
Passive Safety consists of airbag systems, steering wheels and
seatbelts. Its market is characterized by stable growth and
incremental innovation which requires the highest requirements on
quality and manufacturing efficiency. It is estimated that the
total available market for Passive Safety will grow from around
$20 billion in 2017 to around
$25 billion in 2025. During the same
period Passive Safety is expected to outgrow the market and light
vehicle production, which is expected to grow by close to two
percent annually. The objective for Passive Safety is to remain the
market and innovation leader while maintaining a high level of
quality and capital efficiency and further improving its margin
performance.
Passive Safety is the global market leader with a market share
of 39% in 2016. Over the last 2.5 years Passive Safety's share of
order intake has been around 50% or more indicating significant
market share expansion ahead. Standalone, Passive Safety will have
increased freedom to further optimize its performance. In 2016
Passive Safety sales were $7.9
billion, with a target to reach more than $10 billion in revenues in 2020.
If the separation takes place, the process is estimated to take
around one year under most separation scenarios. Updates to the
progress of the strategic review will be provided in a timely
manner.
Autoliv has been reporting its Passive Safety and Electronics
businesses as two separate segments since the beginning of
2016.
Inquiries:
Media
Thomas Jönsson
Group Vice President, Corporate Communications
Tel +46 (0)8-5872-0627
Investors
Ray Pekar
Vice President Investor Relations Americas
Tel +1-248-794-4537
Anders Trapp
Vice President Investor Relations
Tel +46(0)8-5872-0671
This information is information that Autoliv, Inc. is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the Group VP of Corporate Communications set out above, at 07.00
CET on September 14, 2017.
About Autoliv
Autoliv, Inc. is the worldwide leader in automotive safety
systems, and through its subsidiaries develops and manufactures
automotive safety systems for all major automotive manufacturers in
the world. Together with its joint ventures, Autoliv has more than
80 facilities with 70,000 employees in 27 countries. In addition,
the Company has 22 technical centers in ten countries around the
world, with 19 test tracks, more than any other automotive safety
supplier. Sales in 2016 amounted to about US $10.1 billion. The Company's shares are listed on
the New York Stock Exchange (NYSE: ALV) and its Swedish Depository
Receipts on Nasdaq Stockholm (ALIV sdb). For more information about
Autoliv, please visit our company website at
www.autoliv.com.
Safe Harbor Statement
This release 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 without limitation,
statements related to the Company's strategic review of its
operating structure or the terms, timing or structure of any such
transaction as a result of such review, if any; the outlook for
Passive Safety and Electronics as separate businesses; statements
related to the future performance of the Company or of any such
businesses if any such transaction is completed; other targets
regarding the Company's performance as a single entity;
management's examination of historical operating trends and data,
as well as estimates of future sales, operating margin, cash flow,
effective tax rate or other future operating performance or
financial results, are based upon our current expectations, various
assumptions and/or 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. In some cases, you can identify these statements by
forward-looking words such as "estimates", "expects",
"anticipates", "projects", "plans", "intends", "believes", "may",
"likely", "might", "would", "should", "could", or the negative of
these terms and other comparable terminology, although not all
forward-looking statements contain such words. Because these
forward-looking statements involve risks and uncertainties, the
outcome could differ materially from those set out in the
forward-looking statements for a variety of reasons, including
without limitation, changes in light vehicle production;
fluctuation in vehicle production schedules for which the Company
is a supplier, changes in general industry and market conditions or
regional growth or decline; changes in and the successful execution
of our capacity alignment, restructuring and cost reduction
initiatives and the market reaction thereto; loss of business from
increased competition; higher raw material, fuel and energy costs;
changes in consumer and customer preferences for end products;
customer losses; changes in regulatory conditions; customer
bankruptcies, consolidations, or restructurings; divestiture of
customer brands; unfavorable fluctuations in currencies or interest
rates among the various jurisdictions in which we operate;
component shortages; market acceptance of our new products; costs
or difficulties related to the integration of any new or acquired
businesses and technologies; continued uncertainty in pricing
negotiations with customers; successful integration of acquisitions
and operations of joint ventures; successful implementation of
strategic partnerships and collaborations; our ability to be
awarded new business; product liability, warranty and recall claims
and investigations and other litigation and customer reactions
thereto; (including the resolution of the Toyota recall); higher
expenses for our pension and other postretirement benefits,
including higher funding requirements for our pension plans; work
stoppages or other labor issues; possible adverse results of
pending or future litigation or infringement claims; our ability to
protect our intellectual property rights; negative impacts of
antitrust investigations or other governmental investigations and
associated litigation relating to the conduct of our business; tax
assessments by governmental authorities and changes in our
effective tax rate; dependence on key personnel; legislative or
regulatory changes impacting or limiting our business; political
conditions; dependence on and relationships with customers and
suppliers; the uncertainty as to which strategic alternatives may
be available with respect to the Electronics business, whether any
transaction will be commenced or completed as a result of such
review, and the timing and value of any such transaction; risks
related to the potential separation of the Electronics business;
and other risks and uncertainties identified under the headings
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our Annual
Reports and Quarterly Reports on Forms 10-K and 10-Q and any
amendments thereto. 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 publicly or revise any forward-looking
statements in light of new information or future events, except as
required by law.
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