Autoliv to Gradually Close Türkiye Operations, Affecting 2,200 Employees by 2028

Autoliv, Inc. (ALV) announces a significant shift in its operational strategy, planning to gradually phase out manufacturing in Türkiye by the first half of 2028. This decision is a direct response to the evolving dynamics of the automotive industry and is aimed at realigning production capacity with expected market demands in the EMEA region.

Strategic Realignment in Manufacturing

The decision to cease production activities affects around 2,200 employees and involves transitioning critical manufacturing tasks, such as the production of airbags, steering wheels, and seatbelts, to other facilities within the EMEA region. Autoliv’s management identifies a surplus in manufacturing capacity as a driving factor behind this strategy, allowing the company to optimize its production footprint and enhance operational efficiency.

This operational change comes with substantial financial implications, including an estimated pre-tax charge of approximately $142 million. Most of this charge is anticipated to be recorded in the second quarter of 2026 and encompasses costs related to severance, employee retention, and asset write-offs. Magnus Jarlegren, President of Autoliv EMEA, acknowledges the challenges posed by this transition but emphasizes the necessity of maintaining competitiveness in a changing market.

Commitment to Employees and Customers

Despite the manufacturing closures, Autoliv will continue its customer-facing operations in Türkiye. This commitment aims to ensure that the delivery of high-quality safety systems remains consistent with the company’s global operational standards, reassuring clients of the company’s dedication to service throughout this transitional period.

Long-Term Objectives in a Competitive Market

As Autoliv navigates these changes, the focus remains on aligning its production capabilities with future market needs. By optimizing its operational footprint within the EMEA region, Autoliv positions itself to better respond to industry demands while ensuring the company continues to provide critical safety solutions to its customers worldwide.

In this time of transition, the company remains committed to a respectful treatment of impacted employees, showcasing a dedication to corporate responsibility alongside strategic business adjustments.