Autoliv to Close Türkiye Plants; $142M Charge, $40M Annual Savings
Autoliv, Inc. announced a plan to close its manufacturing plants in Türkiye, which produce steering wheels, airbags, and seatbelts, due to excess manufacturing capacity in the EMEA region. This restructuring is expected to incur a pre-tax charge of approximately $142 million, with $129 million in cash charges primarily for severance and employee retention, and will affect about 2,200 employees. The company anticipates realizing an estimated pre-tax benefit of $40 million annually, fully realized by fiscal year 2028. Additionally, Autoliv declared a quarterly dividend of 87 cents for the second quarter of 2026 and announced the results of its annual stockholders meeting, including the election of directors and approval of executive compensation and the independent auditing firm.
Key Highlights
- Autoliv to discontinue manufacturing operations in Türkiye.
- Expected pre-tax charge of approximately $142 million for capacity alignment.
- Cash charges of $129 million primarily for severance and employee retention.
- Non-cash charge of $13 million from fixed asset and inventory write-offs.
- Approximately 2,200 employees in Türkiye to be affected by closures.
- Anticipates an estimated $40 million annual pre-tax benefit by 2028.
- Board declared a quarterly dividend of 87 cents for Q2 2026.
- Shareholders approved directors, executive compensation, and auditor.