Autoliv Inc. 2005 company profile edition 3 - Just-Auto.com
Autoliv Inc. 2005 company profile edition 3 - Just-Auto.com
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Page 1<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>.<br />
<strong>2005</strong> <strong><strong>com</strong>pany</strong> <strong>profile</strong> <strong>edition</strong> 3<br />
© 2004 All content copyright Arog Ltd. All rights reserved.
Page i<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>.<br />
<strong>2005</strong> <strong><strong>com</strong>pany</strong> <strong>profile</strong> <strong>edition</strong> 3<br />
November <strong>2005</strong><br />
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Page iii<br />
Table of contents<br />
Multi-user licence <strong>edition</strong>............................................................................................ ii<br />
Copyright statement ..................................................................................................ii<br />
Table of contents ........................................................................................................ iii<br />
List of tables................................................................................................................ iv<br />
List of figures ............................................................................................................... v<br />
just-auto.<strong>com</strong>’s research portfolio ............................................................................ vi<br />
<strong>Inc</strong>redible ROI for your budget – single and multi-user licences..............................vi<br />
just-auto.<strong>com</strong> membership ....................................................................................... vii<br />
Chapter 1: Company Dossier...................................................................................... 1<br />
Chapter 2: Worldwide Locations ................................................................................ 4<br />
Chapter 3: Financial Analysis ..................................................................................... 7<br />
Chapter 4: Competitor Analysis ................................................................................. 8<br />
Chapter 5: Key Events................................................................................................. 9<br />
Chapter 6: SWOT Analysis........................................................................................ 12<br />
Strengths................................................................................................................ 12<br />
Weaknesses........................................................................................................... 12<br />
Opportunities.......................................................................................................... 12<br />
Threats ................................................................................................................... 13<br />
Chapter 7: Customers................................................................................................ 14<br />
Chapter 8: Products................................................................................................... 18<br />
Chapter 9: Product Development ............................................................................. 21<br />
Chapter 10: Prospects............................................................................................... 22<br />
Online sources of information.................................................................................. 23<br />
Free email newsletters ........................................................................................... 23<br />
Other research reports ........................................................................................... 23<br />
Global news and feature articles............................................................................ 23<br />
Search the web ...................................................................................................... 23<br />
Your feedback ............................................................................................................ 24<br />
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Page iv<br />
List of tables<br />
Table 1: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s worldwide locations................................................................ 4<br />
Table 2: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s key financial performance, 2000-2004................................... 7<br />
Table 3: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s products across categories .................................................. 19<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Page v<br />
List of figures<br />
Figure 1: Contribution of various customers to sales (as a % of sales) ................. 14<br />
Figure 2: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s sales by geographical region, 2003-2004 (% of sales)....... 16<br />
Figure 3: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s sales by key product segments, 2003-2004 (% of<br />
sales)...................................................................................................................... 20<br />
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Page vi<br />
just-auto.<strong>com</strong>’s research portfolio<br />
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Chapter 1 Company Dossier Page 1<br />
Chapter 1: Company Dossier<br />
Company name<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>.<br />
Business activity<br />
Headquartered at Stockholm, Sweden, and incorporated at Delaware, US, <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> is<br />
a global leader in the area of automotive safety systems. The <strong><strong>com</strong>pany</strong> specialises in the<br />
supply of automotive occupant safety restraint systems, including modules and<br />
<strong>com</strong>ponents for passenger and driver-side airbags, seat belts, safety seats, steering<br />
wheels, side-impact airbag protection systems and other safety systems, to leading car<br />
manufacturers. The <strong><strong>com</strong>pany</strong>'s product offerings are classified into two broad product<br />
categories, namely Airbags and related products segment (which includes electronics,<br />
steering wheels, initiators and inflators), and the Seat belts and related products<br />
segment (which includes seat <strong>com</strong>ponents). <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>'s sales during the fiscal year<br />
ended December 31, 2004 (or fiscal 2004) totalled US$x,xxx million, an increase of xx%<br />
over fiscal 2003.<br />
Stock symbol<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s shares are traded on the New York Stock Exchange under the ticker symbol<br />
ALV. The <strong><strong>com</strong>pany</strong>’s Swedish Depositary Receipts are represented as ALIV on the<br />
Stockholm Stock Exchange.<br />
Key executives<br />
Lars Westerberg, President & Chief Executive Officer<br />
Halvar Jonzon, Vice President, Purchasing<br />
Magnus Lindquist, Vice President & Chief Financial Officer<br />
Mats Ödman, Vice President, Corporate Communications<br />
Hans-Göran Patring, Vice President, Human Resources<br />
Jan Carlson, Vice President, Engineering<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 Worldwide Locations Page 4<br />
Chapter 2: Worldwide Locations<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> is a holding corporation incorporated in Delaware, US, and has its principal<br />
executive offices located in Stockholm, Sweden. It had xx,xxx employees, at the end of<br />
September <strong>2005</strong>. <strong><strong>Auto</strong>liv</strong> has xx manufacturing facilities (inclusive of both <strong>com</strong>pletely<br />
and partially owned facilities) spread across xx countries. North America, Europe and<br />
Japan, collectively referred to as the “Triad”, are the major markets for <strong><strong>Auto</strong>liv</strong>.<br />
Table 1: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s worldwide locations<br />
Country<br />
Company<br />
Europe<br />
Belgium<br />
<strong><strong>Auto</strong>liv</strong> Belgium<br />
Czech Republic<br />
<strong><strong>Auto</strong>liv</strong> GmbH<br />
Estonia<br />
Norma<br />
<strong><strong>Auto</strong>liv</strong> <strong>Auto</strong>mation<br />
<strong><strong>Auto</strong>liv</strong> France, Paris<br />
EAK - Composants Pour l'<strong>Auto</strong>mobile<br />
<strong><strong>Auto</strong>liv</strong> France, Gournay<br />
France<br />
<strong><strong>Auto</strong>liv</strong> Isodelta<br />
OEA Initiator Facility, France<br />
N.C.S. Surveilliers<br />
Livbag SA<br />
<strong><strong>Auto</strong>liv</strong> Electronics SAS, Rouen<br />
<strong><strong>Auto</strong>liv</strong> Electronics, Pontoise<br />
<strong><strong>Auto</strong>liv</strong> Sicherheitstechnik GmbH, Werk Ost<br />
<strong><strong>Auto</strong>liv</strong> GmbH, Werk Nord<br />
Germany<br />
<strong><strong>Auto</strong>liv</strong> GmbH, Braunschweig<br />
<strong><strong>Auto</strong>liv</strong> GmbH, Werk Süd<br />
<strong><strong>Auto</strong>liv</strong> Protektor GmbH<br />
<strong><strong>Auto</strong>liv</strong> Stakupress GmbH<br />
Hungary<br />
<strong><strong>Auto</strong>liv</strong> Kft<br />
Netherlands<br />
Van Oerle Alberton B.V.<br />
Poland<br />
<strong><strong>Auto</strong>liv</strong> Poland Sp.zo.o.<br />
<strong><strong>Auto</strong>liv</strong> Poland Restraint Systems<br />
Romania <strong><strong>Auto</strong>liv</strong> Romania S. A.<br />
Italy<br />
<strong><strong>Auto</strong>liv</strong> Italia SPA<br />
<strong><strong>Auto</strong>liv</strong> KLE S.A.<br />
Spain<br />
<strong><strong>Auto</strong>liv</strong> BKI S.A.<br />
<strong><strong>Auto</strong>liv</strong> Development AB<br />
<strong><strong>Auto</strong>liv</strong> Sverige AB<br />
Sweden<br />
<strong>Auto</strong>flator AB<br />
<strong><strong>Auto</strong>liv</strong> Research<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 3 Financial Analysis Page 7<br />
Chapter 3: Financial Analysis<br />
For the fiscal ended December 31, 2004, <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> posted sales of US$x,xxx million,<br />
an increase of xx% over 2003. The <strong><strong>com</strong>pany</strong> registered an organic growth of x% in spite<br />
of the flat rate of vehicle production in North America, Japan, and Europe (the Triad)<br />
during the year. The increase in organic growth was chiefly due to the higher market<br />
shares achieved in inflatable curtains, seat belts, safety electronics and steering wheels.<br />
<strong><strong>Auto</strong>liv</strong> also enjoyed higher penetration for its side airbags designed for chest protection.<br />
Net in<strong>com</strong>e increased xx.x% year-on-year to US$xxx million in 2004, helped by lower<br />
interest expense and higher operating profit.<br />
For the third quarter ended September <strong>2005</strong>, <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> posted a consolidated net sales<br />
of US$x,xxx.x million, reporting a marginal increase of x.x% over the corresponding<br />
quarter of fiscal 2004. The <strong><strong>com</strong>pany</strong> witnessed sales growth despite a x% decline in the<br />
Western European light vehicle production. Operating in<strong>com</strong>e remained flat during the<br />
quarter totalling US$xxx.x million. However, the <strong><strong>com</strong>pany</strong>’s net in<strong>com</strong>e dropped xx.x%<br />
year-on-year to US$xx.x million. <strong><strong>Auto</strong>liv</strong>’s sales from airbag products totalled US$xxx.x<br />
million, increasing by x.x% over third quarter 2004. The marginal increase was led by<br />
growth in sales of side curtain airbags, knee airbags and steering wheels. Seat belt<br />
products sales stood at US$xxx.x million for the quarter under consideration, increasing<br />
by x.x% due to the consolidation of the results of a Chinese joint venture.<br />
Table 2: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s key financial performance, 2000-2004<br />
(Figures are in millions of US$, unless otherwise indicated)<br />
2000 2001 2002 2003 2004<br />
Sales x,xxx x,xxx x,xxx x,xxx x,xxx<br />
Net in<strong>com</strong>e xxx* xxx* xxx xxx xxx<br />
Capital expenditures xxx xxx xxx xxx xxx<br />
Net cash provided by operating activities xxx xxx xxx xxx xxx<br />
Total shareholders' equity x,xxx x,xxx x,xxx x,xxx x,xxx<br />
Total assets x,xxx x,xxx x,xxx x,xxx x,xxx<br />
Number of employees at the end of the xx,xxx x,xxx x,xxx xx,xxx xx,xxx<br />
fiscal<br />
Note: * - Adjusted for the effect of the accounting principle FAS-142<br />
Fiscal year ended December 31<br />
Source: <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 4 Competitor Analysis Page 8<br />
Chapter 4: Competitor Analysis<br />
As of December 2004, <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> <strong>com</strong>manded around a third of the global automotive<br />
safety market. The <strong><strong>com</strong>pany</strong>’s <strong>com</strong>petitive strengths include technological leadership<br />
and an extensive worldwide presence. Its closest <strong>com</strong>petitors are Takata of Japan and<br />
TRW of the US. Part of <strong><strong>Auto</strong>liv</strong>’s worldwide strategy has been to strengthen its position<br />
in Asia to leverage the impressive growth that the region is experiencing. Its Asian thrust<br />
has allowed it to diversify its customer mix worldwide. Takata accounted for around a<br />
fifth of the global market at the end of 2004. It has been able to expand its business due<br />
to the global success that Japanese OEMs are experiencing.<br />
Another key <strong>com</strong>petitor, TRW <strong>Auto</strong>motive, also <strong>com</strong>mands around a fifth of the global<br />
automotive safety systems market. It was acquired by the private equity fund,<br />
Blackstone Group, in 2003. In 2004, TRW listed xx% of its <strong>com</strong>mon stock on the New<br />
York Stock Exchange. Additionally, its customer base is well diversified with no single<br />
customer contributing more than xx% to the total sales and no specific product line<br />
contributing more than xx% to the total sales of the <strong><strong>com</strong>pany</strong>. With xx% of TRW<br />
<strong>Auto</strong>motive’s sales in 2003 contributed by safety-related products, the <strong><strong>com</strong>pany</strong> sees a<br />
potential market in North America and Europe in the integrated safety systems segment,<br />
largely triggered off by the side-impact regulation in North America. All other major<br />
<strong>com</strong>petitors, including Key Safety Systems, accounted for approximately xx% of the<br />
global automotive safety market in 2004.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 5 Key Events Page 9<br />
Chapter 5: Key Events<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> was formed through the 1997 merger of Sweden-based <strong><strong>Auto</strong>liv</strong> AB and<br />
Morton ASP (<strong>Auto</strong>motive Safety Products), an airbag manufacturer operating in North<br />
America and Asia.<br />
In 1956, <strong><strong>Auto</strong>liv</strong> AB was the forerunner in the area of seat belt technology. Morton ASP<br />
was a leader in the development of airbag technology, and played a crucial role in the<br />
launch of the first air bag system in 1980, which went on to be<strong>com</strong>e a sizeable<br />
<strong>com</strong>mercial success. In 1992, <strong><strong>Auto</strong>liv</strong> started production of textile cushions with its<br />
innovative one-piece-weaving (OPW) technology for driver airbags. This technology was<br />
patented and turned out to be the key for the production of the inflatable curtains<br />
launched in 1998. The <strong><strong>com</strong>pany</strong> was acquired by Gränges Weda AB, a manufacturer of<br />
seat belt retractors, in 1974. Following the acquisition of the Gränges group by<br />
Electrolux in 1980, the Gränges Weda name was changed to Electrolux <strong><strong>Auto</strong>liv</strong>.<br />
In the 1980s and 1990s, <strong><strong>Auto</strong>liv</strong> pursued a series of acquisitions, primarily of seat belt<br />
manufacturers based in Europe, New Zealand and Australia. Several instances among<br />
many include the acquisition of Germany-based <strong>Auto</strong>flug Sicherheitstechnik GmbH in<br />
1992 and Britax Overseas Ltd, which had operations in Germany, the UK and Australia,<br />
in 1998.<br />
In 1994, Electrolux sold its stake in <strong><strong>Auto</strong>liv</strong>, and the <strong><strong>com</strong>pany</strong> was renamed <strong><strong>Auto</strong>liv</strong> AB.<br />
A couple of years later, <strong><strong>Auto</strong>liv</strong> acquired <strong><strong>Auto</strong>liv</strong> Mekan AB and <strong><strong>Auto</strong>liv</strong> Hammarverken<br />
AB to form <strong><strong>Auto</strong>liv</strong> Seat Sub-Systems. Moreover, during 1996, <strong><strong>Auto</strong>liv</strong> increased its<br />
holding in the joint venture Livbag SA to xx%.<br />
During the period 1996-99, <strong><strong>Auto</strong>liv</strong> executed three decisive steps in the acquisition of<br />
shares in Isodelta, a leading manufacturer of steering wheels in Europe, in order to<br />
develop airbags integrated with steering wheels.<br />
In a bid to consolidate its supplier base, <strong><strong>Auto</strong>liv</strong> acquired one of its chief suppliers,<br />
Marling Industries plc, and its subsidiary, Van Oerle Alberton, a global leader in the<br />
manufacture of seat belt webbing, in 1997. The following year, <strong><strong>Auto</strong>liv</strong> made several<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 6 SWOT Analysis Page 12<br />
Chapter 6: SWOT Analysis<br />
Strengths<br />
Between fiscal 2000 and 2004, <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s sales grew nearly xx% and, as of December<br />
2004, the <strong><strong>com</strong>pany</strong> <strong>com</strong>manded around a third of the worldwide automotive safety<br />
market. This is a significant statistic showcasing the <strong><strong>com</strong>pany</strong>’s leadership position in the<br />
industry, particularly considering the fact that the industry actually registered a decline of<br />
x% in the production of light vehicles in Europe and North America over the same<br />
period. The <strong><strong>com</strong>pany</strong>’s sales growth is partly explained by its significant global<br />
diversification over the years, which fortifies the <strong><strong>com</strong>pany</strong>’s defences against the shortterm<br />
vagaries across key automotive markets.<br />
Weaknesses<br />
Though <strong><strong>Auto</strong>liv</strong> is the current market leader in the area of automotive safety restraint<br />
systems, its dependence on the struggling US automaker, Ford Motors, for nearly xx%<br />
of its sales is a formidable weakness.<br />
Opportunities<br />
Within a few years, <strong><strong>Auto</strong>liv</strong> is expected to consolidate its supplier base worldwide from<br />
x,xxx at the end of 2004, to just 500. The consolidation will provide the <strong><strong>com</strong>pany</strong> with<br />
significant cost savings.<br />
In 2003, US vehicle manufacturers declared a self-<strong>com</strong>mitment for improved side-impact<br />
safety, and the plan is to be implemented in phases, to culminate by September 2009.<br />
The <strong>com</strong>mitment espouses the use of airbag curtains and side airbags to increase<br />
safety. Moreover, in June 2003, a US Senate <strong>com</strong>mittee introduced draft legislation<br />
intended for rollover protection, which calls for advanced safety features, such as side<br />
impact airbags and side curtains. These developments are likely to push up demand for<br />
<strong><strong>Auto</strong>liv</strong>’s airbag related products in the principal markets of the US and Europe.<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 7 Customers Page 14<br />
Chapter 7: Customers<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> supplies products to a number of leading automotive OEMs worldwide. The<br />
key global customers of the <strong><strong>com</strong>pany</strong> are Ford, Renault/Nissan, General Motors (GM),<br />
Volkswagen, Peugeot-Citroen, DaimlerChrysler and Toyota. The following table<br />
illustrates the various customers of <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> in terms of percentage contribution to total<br />
<strong><strong>com</strong>pany</strong> sales.<br />
Figure 1: Contribution of various customers to sales (as a % of sales)<br />
2003<br />
Ford Group<br />
xx%<br />
Others<br />
xx%<br />
Renault/Nissan<br />
xx%<br />
GM<br />
xx%<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 8 Products Page 18<br />
Chapter 8: Products<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> ranks as one of the leading global suppliers of automotive occupant safety<br />
restraint systems, offering a wide array of products.<br />
The <strong><strong>com</strong>pany</strong>'s product offerings are classified into two broad product segments, namely<br />
the Airbags and related products segment (which includes electronics, steering wheels,<br />
initiators and inflators), and the Seat belts and related products segment (which includes<br />
seat <strong>com</strong>ponents).<br />
In fiscal 2004, the Airbags and related products segment contributed US$x,xxx million<br />
(or xx% of <strong><strong>com</strong>pany</strong> sales), while the Seat belts and associated products segment<br />
contributed US$x,xxx (or xx% of total sales).<br />
The products manufactured in 2004 by <strong><strong>Auto</strong>liv</strong>'s wholly owned factories included over xx<br />
million entire seat belt systems (of which over xx million were equipped with<br />
pretensioners), over xx million modules of frontal airbags, side-impact airbags (inclusive<br />
of curtain airbags) of over 30 million, close to 10 million steering wheel units and over xx<br />
million electronic units.<br />
For the third quarter of <strong>2005</strong>, <strong><strong>Auto</strong>liv</strong>’s airbag products segment contributed xx.x% of net<br />
sales. Seat belts products segment accounted for the remaining xx.x% sales.<br />
<strong><strong>Auto</strong>liv</strong>’s product launches during the third quarter <strong>2005</strong>:<br />
• Side airbags – Buick Lucerne, Porsche Cayman<br />
• Safety electronics – Ford Explorer, Ford Fusion, Lincoln Zephyr, Mercury<br />
Mountaineer and Milan, Porsche Cayman<br />
• Driver airbags – Chrysler PT Cruiser, Honda Civic, Porsche Cayman<br />
• Passenger airbags – Porsche Cayman, VW Jetta<br />
• Inflatable curtains – Honda Pilot, Chrysler PT Cruiser, VW Jetta<br />
• Seatbelts – Toyota Ractis, Pontiac Torrent<br />
© 2004 All content copyright Aroq Ltd. All rights reserved.
Chapter 9 Product Development Page 21<br />
Chapter 9: Product Development<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> spends a significant amount of its revenues on research and development. In<br />
2004, the <strong><strong>com</strong>pany</strong>'s R&D and engineering expenses was US$xxx.x million,<br />
representing approximately x% of sales. At the end of fiscal 2004, <strong><strong>Auto</strong>liv</strong> had x,xxx<br />
R&D projects, which mostly were related to application engineering on extant products<br />
based on customer supply contracts.<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> released details about two key R&D projects at the end of 2004:<br />
• Fixed-hub steering wheel with optimised airbag: <strong><strong>Auto</strong>liv</strong> developed a steering<br />
wheel equipped with a fixed hub, which allows for the development of driver<br />
airbags that prevent the driver from <strong>com</strong>ing into contact with the windshield in<br />
cases of oblique crashes. The newly developed steering wheel also eliminates<br />
the necessity of a connecting coil. In 2004, the fixed-hub steering wheel was<br />
introduced in the Citroën C4.<br />
• New side-impact airbag: At the end of 2004, <strong><strong>Auto</strong>liv</strong> reported that it was<br />
developing special airbags for convertibles, as conventional curtain airbags do<br />
not lend themselves for applications in convertibles. The new door-mounted<br />
airbags feature <strong><strong>Auto</strong>liv</strong>’s patented one-piece weaving technology.<br />
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Chapter 10 Prospects Page 22<br />
Chapter 10: Prospects<br />
In the period 1997-2004, <strong><strong>Auto</strong>liv</strong> <strong>Inc</strong>’s sales grew at a <strong>com</strong>pounded annual growth rate<br />
(CAGR) of 10%. The <strong><strong>com</strong>pany</strong> has increased its market share steadily over the years<br />
and is aggressively following its strategy of globalisation. Over the past five years,<br />
<strong><strong>Auto</strong>liv</strong> has been investing heavily in Asia, especially in Korea, China and Japan. Such<br />
efforts are also helping the <strong><strong>com</strong>pany</strong> to diversify its worldwide customer mix. Moreover,<br />
<strong><strong>Auto</strong>liv</strong> is shifting production to countries such as Romania, Mexico and China in order to<br />
trim costs and offset customer pricing pressures. Apart from geographic expansions, the<br />
<strong><strong>com</strong>pany</strong> also expanded manufacturing capacity in 2004, particularly for side airbags.<br />
Furthermore, the <strong><strong>com</strong>pany</strong> has announced plans to expand production capacity for the<br />
‘Inflatable Curtain’, as new US regulations on side-impact protection raise demands for<br />
the product.<br />
<strong><strong>Auto</strong>liv</strong> <strong>Inc</strong> has projected better sales growth for fiscal <strong>2005</strong> as against the underlying<br />
market rate. As part of the <strong><strong>com</strong>pany</strong>’s cost reduction activities, its airbag plant in the UK<br />
is to be phased out within a year, and the majority of the production is planned for<br />
relocation to Turkey. The total cost for the plant closure was estimated at US$xx million,<br />
of which US$xx million was charged in fiscal <strong>2005</strong>’s first quarter, while the majority of<br />
the remaining US$x million was expected to be accounted for before the close of <strong>2005</strong>.<br />
Overall, <strong><strong>Auto</strong>liv</strong> is in a very strong position in relation to its <strong>com</strong>petitors and is set for<br />
substantial growth. The <strong><strong>com</strong>pany</strong> must also work towards diversifying its customer base<br />
and avoid being dependent on Ford to such a large extent. However, unfavourable<br />
exchange fluctuation is a continuing cause for concern.<br />
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