Autoliv, Inc.

Company overview

• Delaware corporation serving as a holding company for two principal subsidiaries: Autoliv AB and Autoliv ASP, Inc.
• Principal offices in Stockholm, Sweden. Fiscal year ends December 31.
• Focused on the design, development, manufacture, and supply of passive safety systems for the automotive industry, plus broader mobility safety solutions.

Products and solutions

• Core products
  • Airbags (frontal, side, curtain, knee, front-center)
  • Steering wheels
  • Inflators and propellants
  • Seatbelts, including pretensioners and load limiters
• Mobility safety solutions
  • Passive safety systems for commercial vehicles
  • Battery cut-off switches
  • Safety solutions for motorcycle and bicycle riders

Production and delivery model

• Just-in-time (JIT) delivery to OEMs, with near-customer final assembly or distribution centers.
• Global production and engineering footprint that enables rapid capacity adjustments.

Scale and footprint (2025)

• Sales: $10.8 billion
• Employees: approximately 64,300 worldwide as of December 31, 2025 (about 10% temporary)
• Production facilities: 62 across 23 countries
• Corporate staff in Stockholm: about 113 people

Product mix and production output (2025)

• Product mix by safety content
  • Airbags and steering wheels: about 68% of sales
  • Seatbelts: about 32% of sales
• Illustrative 2025 production volumes
  • 143 million complete seatbelt systems (100 million with pretensioners)
  • 143 million side airbags (including curtain and front-center airbags)
  • 61 million frontal airbags
  • 21 million steering wheels

Customers and concentration

• Customer base includes the world’s largest car manufacturers; customer concentration is high.
• Top five customers: about 44% of consolidated net sales
• Top ten customers: about 70% of consolidated net sales
• Regional customer sales (2025)
  • Asian OEMs: about 48% of consolidated net sales (Japanese OEMs ~ two-thirds of Asia total; Chinese OEMs ~ 8%, with Geely >2%)
  • European brands: about 30%
  • U.S. OEMs (including Chrysler and new EV manufacturers): about 20%

Geography and market position

• Regions of operation: The Americas, Europe, China, and Asia excluding China.
• Market position: global leader in passive safety components with airbags/steering wheels market share around 44% and seatbelts market share around 45%.

Research, development, and intellectual property

• R&D spend in 2025: gross $616 million; net of customer-reimbursed R&D: $413 million.
• Customer-funded R&D accounted for 79% of gross R&D.
• Intellectual property is protected through patents and is important to competitive position.

Backlog and program launches

• Backlog consists of frame contracts with automakers, typically entered up to three years before production.
• Contracts generally cover the life of a car model or platform and commonly include no minimum quantities, no firm prices, and no exclusivity.
• New program launches require coordination across multiple suppliers; timing and ramp-up can affect results.

Quality, manufacturing, and standards

• Q5 quality initiative (launched 2010) focuses on five dimensions: products, customers, growth, behavior, and suppliers.
• Four lines of quality defense: strong design standards, component quality, manufacturing conformance verification, and advanced traceability for recalls.
• Product development system (APS) integrates quality into development and manufacturing.
• 1P1P initiative standardizes core products and customer-specific features.
• All facilities shipping to OEMs are regularly certified to IATF 16949:2016; 70% of production facilities certified to ISO 45001 as of 2025.

Raw materials, supply chain, and risks

• Direct material cost ~54% of net sales in 2025 (raw materials account for about half of that).
• Exposed to raw material cost volatility; sourcing and material choices are active management areas.
• Conflict minerals due diligence and supply chain sustainability are ongoing concerns.
• Global supply chain risks include tariffs, sanctions, geopolitical events, and logistic disruptions.

Financial snapshot and liquidity

• Total debt outstanding: $2.2 billion as of December 31, 2025.
• Leverage and access to capital can affect operations and growth strategies.
• Dividends and share repurchases are discretionary.
• Global operations expose the company to foreign exchange and tax considerations, including potential BEPS-related policy impacts.

Sustainability and climate

• Climate targets: carbon neutrality in own operations by 2030; net-zero emissions across the supply chain by 2040.
• Science Based Targets (SBTs) approved in January 2022.
• Ongoing focus on emissions reductions, reporting, and governance.

Governance and compliance

• Compliance programs for international anti-bribery, trade, and export controls.
• Exposed to regulatory actions and potential litigation related to operations, intellectual property, and environmental issues.

Strategic implications

• Large, global supplier with significant customer concentration and a broad product portfolio.
• Strong positions in airbags/steering wheels and seatbelts, with expanding mobility safety solutions.
• Growth is supported by R&D, a global manufacturing footprint, and structured quality systems, while commodity costs, regulatory changes, and geopolitical factors remain key risks.