Autoliv To Shut Two U.S. Plants In Cost Cutting Effort

Autoparts Report, Dec 4, 2002

Swedish car safety equipment maker Autoliv said it would close two plants in the United States to save $5 million in 2003 and $20 million annually starting in 2004. The company, suffering from the slowdown in the car industry as a result of a weaker global economy, said the savings program will cost a total of $15 million.

"Most of the cost will be offset by a combination of unrelated one-time revenues and release of previously established accruals. The net effect on the fourth quarter earnings will therefore be less than $5 million," Autoliv said.

The two plants to be phased out over the next 12 months are a seat belt factory in Indianapolis, Indiana, which employs 350 people, and an airbag inflator factory in Denver, Colorado, employing 500.