Autoliv to shut Türkiye factories in EMEA manufacturing realignment

Autoliv (NYSE:ALV) unveiled a significant restructuring of its European operations, announcing a phased withdrawal from manufacturing in Türkiye as part of a broader effort to optimize its regional production capacity.

The Stockholm-based automotive safety giant plans to shift the manufacturing of steering wheels, airbags, and seatbelts from its Turkish sites to other existing facilities within the Europe, Middle East, and Africa (EMEA) region.

The strategic exit is expected to impact approximately 2,200 employees and will be executed gradually, with a target completion date in the first half of 2028.

Management indicated that the move is designed to better align its manufacturing footprint with evolving customer demand and to enhance overall operational efficiency across the EMEA theater.

The financial impact of the consolidation will be significant in the near term.

Autoliv expects to incur a total pre-tax charge of approximately $142 million related to the closure.

This figure includes an estimated $129 million in cash charges, primarily driven by employee-related exit costs and severance, as well as a $13 million non-cash write-off.

The company anticipates that the majority of these charges will be recognized during the second quarter of 2026.

This realignment follows a period of intense structural review within the automotive supply chain, as manufacturers grapple with shifting vehicle production volumes and rising logistical complexities in the European market.