Autoliv, Inc. Business Report FY2010
|in million dollars||FY2010||FY2009||Rate of
-Sales of airbag products rose by 46% to $4,807 million, including 12 percentage points from acquisitions. The organic sales increase of 34% was 12 percentage points higher than the LVP increase in the Triad.
-Sales of seatbelt products rose by 30% to $2,364 million. Acquisitions added 5% and currency effects nearly 1%. Organic sales growth of 24% was virtually in line with global LVP.
Acquisitions-The Company, in an offer to purchase additional shares of its Estonian subsidiary Aktsiaselts Norma (Norma), will be exceeding the 90% threshold. In March 2009, the Company announced its intention to make Norma wholly owned. (From a press release on April 15, 2010)
-The Company has agreed to acquire Delphi's Pyrotechnic Safety Switch (PSS) assets in Europe serving customers such as Daimler, Audi and Porsche. In the event of an accident, the pyrotechnic safety switch (PSS) or "battery dis-connect" is activated by the deployment of the airbag. The PSS cuts (isolates) the battery from the vehicle starter and alternator, which helps prevent short circuits and reduces the likelihood of a resulting fire. Applications for electric and hybrid vehicles include crash protection of vehicle wiring circuits and associated battery storage systems. These assets are expected to generate close to 10 million USD of annualized sales in 2010. This transaction is expected to close by April 30, 2010. (From a press release on April 9, 2010)
-The Company has acquired Visteon's radar system business. Autoliv radar specialists have worked together with the Visteon team over the past few years. This partnership has resulted in Blind Spot and Rear Cross Traffic Detection Systems. (From a press release on March 4, 2010)
-The Company has agreed to buy the outstanding 40% of shares in its Japanese joint venture Autoliv Nichiyu Co., Ltd. The joint venture, which is one of Autoliv's five manufacturing facilities in Japan, primarily produces airbag inflators for the Japanese domestic market. Autoliv Nichiyu Co., Ltd will be re-named Autoliv Aichi Co., Ltd and have annual sales of approximately $35 million of which virtually all is internal sales to other Autoliv companies.(From a press release on January 20, 2010)
|(in million $)||2010||2009||2008|
-Expenses incurred for research, development and engineering activities were $361 million, $322 million and $367 million for the years ended December 31, 2010, 2009 and 2008, respectively.
- The Company has technical centers in nine countries worldwide.
|in million $||FY2010||FY2009||FY2008|
|% against sales
-The Company has started up a building extension of its Shanghai manufacturing plant for safety electronics systems and components. The 4,000 square meters area extension will allow Autoliv to increase its manufacturing capacity for electronics by 50% in China and by 15% globally. As a result of the expansion, Autoliv will have an annual production capacity in China of more than 5 million electronic control units (ECUs) for airbag system and of 10 million crash sensor units. The cost for the expansion will be approximately 13 million US dollars. Upon the completion of the extension, Autoliv's plant for electronics will have 600 employees. Currently, Autoliv has 12% of its sales and personnel in China, an increase from 10% in 2009 and 4% in 2007. (From a press release on December 9, 2010)
-The Company began the construction of an airbag inflator plant at its Taubate location near Sao Paulo, Brazil. The new facility will manufacture airbag inflators mainly for driver and passenger side protection, and expects to increase its production for side-impact and rollover applications. The cost for the building amounts to approximately 8 million U.S. dollars. The new plant will increase Autoliv's global inflator manufacturing capacity by roughly 7 percent. Autoliv currently produces inflators in six countries (China, France, Japan, Romania, Sweden and the United States) and accounts for more than 35 percent of the global inflator market. A new Brazilian law requires all new vehicles to have a driver and passenger airbag by 2013. By 2014, all vehicles sold in Brazil must be equipped with frontal airbags. (From a press release on November 8, 2010)
-The Company has begun the construction of a seatbelt webbing plant in Mysore, India. The cost for the initial phase amounts to approximately 10 million USD. The Mysore webbing plant will have capacity to produce 100 million meters of webbing. The new plant will increase Autoliv's global weaving capacity for seatbelt webbing by 20 percent to more than 0.5 billion meters. Currently, Autoliv has five webbing plants in The Netherlands, Romania, Canada, China and Brazil. The customers of these plants include not only Autoliv's own seatbelt system assembly plants but also assembly plants of other seatbelt manufacturers. (From a press release on October 7, 2010)
-The Company has opened its new facility in Bangalore, India. The site hosts a safety technical center and a new airbag and seatbelt assembly unit. In 2009, Autoliv started the production of airbags in India. The new plant makes the supplier's second location for airbag production in the country. This is Autoliv's ninth technical center and one of three specializing in small car safety. Autoliv's sales in India are expected to grow by 36% in 2010 to over 100 million USD. (From a press release on June 18, 2010)