Autoliv Inc. (ALV), a Swedish automotive safety supplier, Friday said that it would be gradually shutting down its manufacturing operations in Türkiye as part of a plan to align production capacity with future demand in the EMEA region.
The company said that the EMEA manufacturing capacity currently exceeds expected future demand. The Türkiye operations, which produce steering wheels, airbags, and seatbelts, employ around 2,200 people. Production will be transferred to other existing Autoliv facilities in the EMEA region, with the full closure in Türkiye expected in the first half of 2028.
Autoliv said that it expects to record a final pre-tax charge of about $142 million related to the restructuring, with most of the charge expected in the second quarter of 2026.
The company said that the total includes a non-cash charge of about $13 million for fixed assets and inventory write-offs. Cash charges of around $129 million mainly relate to severance and employee retention costs, along with smaller costs for environmental matters, equipment decommissioning, and contractual releases. The severance and retention costs are based on a projected exchange rate of 53 Turkish Lira per U.S. dollar, it added.
Commenting on the developments, Magnus Jarlegren, President Autoliv EMEA. said, "As market conditions shift, we are continuously optimizing Autoliv's manufacturing footprint in the EMEA region to better align our capacity with future demand and strengthen our long-term competitiveness. We recognize that this change is difficult for affected employees, and we will approach the situation transparently and respectfully."
On the NYSE, ALV ended Thursday's trading at $121.01, down 0.20 percent. In pre-market trading, the stock is down 0.09 percent, trading at $120.89.
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