STOCKHOLM, June 8, 2023
/PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) (SSE:
ALIVsdb), the worldwide leader in automotive safety systems,
announces it is accelerating its global structural cost reductions,
particularly within its European operations. These actions support
Autoliv's medium- and long-term financial targets and the company
reiterates its full year 2023 indications.
Autoliv continues to actively address its cost base to
accelerate its journey towards its medium-term targets.
Adjusting geographic footprint and headcount
The accelerated structural cost reduction initiatives include
further optimization of the Company's geographic footprint and
organizational structure, including a substantial reduction of its
total direct and indirect workforce by up to 11%. Through these
initiatives, Autoliv will simplify its logistics and geographic
footprint and intends to close several sites in Europe.
These initiatives are expected to reduce up to 2,000 indirect
positions globally, or around 11% of Autoliv's total indirect
workforce. Of this, up to 1,000 are expected to be in Europe. All divisions and functions will be
impacted by these initiatives and the Company expects the first
headcount reductions to occur in 2023.
To further drive global productivity and, specifically, direct
labor efficiency, the Company also intends to reduce its global
direct headcount. The Company anticipates that this will lead to a
reduction of around 6,000 positions globally, or around 11% of
total direct workforce, given today's sales levels as baseline.
The measures will be defined in each country in compliance with
the local regulations and within the framework of a dialogue with
the social partners to determine the most appropriate provisions
for the employees concerned.
The Company expects to accrue a minor part of the total accrual
in the second quarter of 2023. The initiatives are expected to be
fully implemented by 2025 and to have a pay-back time of 1-2
years.
"These initiatives will continue to optimize our geographic
footprint for a more effective structure to best serve our
customers while reducing costs and driving long-term improvement in
margins and cash flow. We intend to simplify and consolidate how we
operate in all areas. The headcount reduction will affect people
based in our offices, technical centers, and plants, including
leadership positions at all levels," said Mikael Bratt, President and CEO of Autoliv.
Customer negotiations continue
The Company continues to negotiate with its customers to secure
pricing that reflects the extraordinary inflation and corrects
structural price gaps. The negotiations are progressing as planned
with most customers albeit the quarterly timing of concluding
updated customer agreements remains uncertain. The highest priority
and greatest challenge are the customer negotiations in
Europe.
"We work intensely with customers to secure price increases, and
we will not stop until we have received full and fair compensation
to ensure that inflationary pressures are effectively pushed
through the value chain," Mr. Bratt continued.
2023 indications reiterated
Based on the current market assumptions and expected outcome of
customer negotiations, Autoliv reiterates its 2023 outlook
indications from April 21, 2023, of
around 8.5-9.0% adjusted operating margin and operating cash flow
of around $900 million.
"Our full year 2023 indications and financial targets remain
firm. We are expecting a gradually improving adjusted operating
margin, which should allow us to deliver a significant increase in
cash flow and shareholder returns," said Mikael Bratt.
Investor Day on June 12,
2023
Autoliv is welcoming investors, analysts, and media to an
Investor Day in Detroit on
June 12, 2023 where it will focus on
its journey towards the targets, its medium- and long-term growth,
products and innovations for future mobility, and Autoliv's
opportunities in automation and operational efficiency. A webcast
of the event will be available on autoliv.com.
Inquiries:
Investors & Analysts: Anders
Trapp, Tel +46 (0)8 587 206 71
Investors & Analysts: Henrik
Kaar, Tel +46 (0)8 587 206 14
Media: Gabriella Ekelund, Tel +46
(70) 612 64 24
About Autoliv
Autoliv, Inc. (NYSE: ALV; Nasdaq Stockholm: ALIV.sdb) is the
worldwide leader in automotive safety systems. Through our group
companies, we develop, manufacture and market protective systems,
such as airbags, seatbelts, and steering wheels for all major
automotive manufacturers in the world as well as mobility safety
solutions, such as pedestrian protection, connected safety services
and safety solutions for riders of powered two wheelers. At
Autoliv, we challenge and re-define the standards of mobility
safety to sustainably deliver leading solutions. In 2022, our
products saved close to 35,000 lives and reduced more than 450,000
injuries.
Our close to 70,000 associates in 27 countries are passionate
about our vision of Saving More Lives and quality is at the heart
of everything we do. We drive innovation, research, and development
at our 14 technical centers, with their 20 test tracks. Sales in
2022 amounted to US $ 8.8 billion.
For more information go to www.autoliv.com.
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 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, including general economic conditions
and fluctuations in the global automotive market. 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 such statements in light of new information or future
events, except as required by law.
The following files are available for download:
https://mb.cision.com/Main/751/3783001/2113982.pdf
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ALV accelerates
structural cost reductions
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SOURCE Autoliv