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SUMMARY
• Proposal to double Autoliv's size by merging with Morton Automotive Safety Products.
• Stock split 2 : l and a 50% dividend rise.
• Continued vertical integration.
• Continued - geographical expansion.
• Capocity expansion by construction of a new plant for textile bags and extension of a Spanish plant.
• New advanced tech centers in the U.S. and Sweden, and a new crash lob in Australia.
• lntroduction of new inflators for airbags.
• ProposC!I to raise the dividend by 22 %.
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5AHS NEJ INCOME IIIiTUilN ON tOUITY
MSIK
100 10.201
700 u
.. ..,.
600 20
500 400 JOO 200
100
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1992 1993 1994 1995 1996 o 1992 1993 1994 1995 1996• iearbolb
AUTOliV 1996
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LETTER TO THE SHAREHOLDERS
Dear Autoliv Shareholder,
F
irst of all, I want to thank you for the confidence Autoliv has showed me by appointing me as its new President and Chief Executive Officer.I also want to express my and Autoliv's gratitude to my predecessor, Gunnar Bark, for his extraordinary contribution to making Autoliv what it is today, one of the leading cam- panies in its industry, in less than 15 years. His leadership has been demarrding and therefore very inspiring, and we are glad that this cooperation should continue, since he has ac- cepted to become Chairman of the New Autoliv Group we are in the process of forming by merging with Morton's Automotive Safety Products Division.
THE MERGER
This merger of equals, which we announced in the fall, will double Autoliv's size in one strake and immediately give Autoliv access to very strong market organizations in the United States and Japan. For Autoliv to build such strong organizations on its own would have taken many years and required substantial investments. But now Autoliv has the opportunity rapidly to form an even better position to serve the world's global ear manufacturers, wherever they have productian facilities.
The merger should also raise Autoliv's chances to sell seat helts, helt pretensioners, steering wheels, airbag dectronies and other products which Morton does not produce. In addition, we should be ab le to gain cost advantages by coor- dinating purchasing and other joint functions. In product development and design, the respective competences of the two campanies could lead to productive cross-fertilization.
Thanks to the complementary character of the two com- panies, the market shares among individual enstomers and in individual countries are not Iikely to change very much, although the world market share for airbag modules for the combined groups will be more than twice as large as Autoliv's present one. The risk should therefore be low of losing business as an effect of achieving a market share with an individual vehicle manufacturer that is perceived to be too high.
In other words, we expect both top-line synergies and eost- savings from the merger. The merger should therefore create shareholder value, and incremental value for our customers.
1996 RESULTS
1996 was yet another successful year for Autoliv. Income after taxes ros e by 17% and sales by 13%.
The improvements are due to higher sales and Autoliv's efforts in 1996 and prior years to develop and design new, more cost-efficient products and productian processes. The efforts also include various steps to increase Autoliv's vertical integration, as well as a number of joint ventures which were started in prior years, many of which now have started to generate profits.
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AUTOLIV 1996STRONG UNIT SALES
Autoliv's strong unit sales growth can be exemplified with the sales of seat helt pretensioners, which jumped 50% to almost 15 million. Since there are almost only pretensioners in the two front seats- at !east for the time being- this me- ans that more than 50% of the 14 million light vehicles, produced in Europe in 1996, had Autoliv's pretensioners.
This reflects our company's outstanding technology in ad-1 ) vanced sea t helt systems and this, in tum, is the result of our long-term commitment to research and development.
In the airbag segment, unit sales grew by 30% to more than 6 million. This means that roughly every third ear pro- duced in Europe in 1996 was equipped with at least one airbag () from Autoliv.
Our sales increase in airbags is mainly explained by higher installation rates among existing customers, but we also started to supply some enstomers which were new for us in the airb~g segment, such as Audi and Volkswagen who star- ted to install side impact airbags in some of their cars.
GREATER INTEGRATION
In 1996, Autoliv's vertical integration was also strengthened.
Two seat component campanies were acquired and the airbag dectronies joint venture Autoliv Nokia was formed.
Livbag became a 51 %-owned subsidiary. At the same time Autoliv's other inflator company, Autoflator, was transferred to Livbag to form Autoliv Inflators. Later in the year, Livbag acquired NCS, one of its suppliers. Another step towards higher integration was making the steering wheel manufac- turer Isodelta a 77%-owned subsidiary.
GEOGRAPHIC EXPANSION
During 1996 Autoliv's positions in different parts of the world were also advanced.
In Japan, one of Autoliv's two Japanese joint ventures was converted to a wholly-owned subsidiary. More engi- neers and management resources were transferred from other Group campanies to the new subsidiary.
In the U.S., the construction of a technical center in {.' Detroit, Michigan, was completed.
In Mexico, the former joint venture was turned into a wholly-owned subsidiary in 1995, and in 1996 the subsidiary was moved to new premises.
In Brazil, a sales company was formed to be the stepping-
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stone - tagether with Autoliv's seat belt exports from Argentina and Europe - for the Group to the world's tenth most important ear market.t {
AUTOLIV'S STRATEGY
All these actions are consistent with Autoliv's strategies, which are:
e Focus on the Core Business
(which is to develop, manufacture and market systems and components for personal safety in automobiles)
• Work as the Customers' Specialist
(by satisfying all needs of the customer in the area of personal safety in automobiles and being a system supplier)
• Work as a Development Partner
(by having a scientific approach to auto safety)
() Integrate Vertically
(by acquiring both sub-suppliers and direct suppli- ers to the ear manufacturers)
• Expand Geographically
(both in the U.S. and Japan as weil as in emerging markets)
o Consafidate in Established Markets
(by leadership in R&D, cost-efficiency and excellent service to customers)
AUTO SAFETY - A GROWTH AREA
The European sea t belt market is growing by close to 3%
annually as a result of the ever on-going upgrading of belt systems with pretensioners and other innovations. In emerg- ing markets, where both automobile productian and safety standards are increasing rapidly, the growth rates are higher.
The world marker for airbags is expected to grow from close to 55 million frontal bags and 2 million side impact bags in 1996 to 80 million and 30 million, respectively, by year 2000. In terms of sales value, however, the increase will be significantly lower, due both to price erosion and to the fact that the price for a chest side impact airbag is less than half the price of a frontal airbag.
The robust growth for side impact airbags should continue into the beginning of the next decade, at which time whiplash protection sales are Iikely to have started. Then there are roll- over protection and Safety System Controls, i.e. new advanced systems for controlling the various safety systems of future cars to provide the best possible protection.
Auto safety thus holds the promise of remaining an area of sustained growth, but the growth rates will, of course, be lower the bigger the total market gets.
OUTLOOK
In 1996, automobile productian in our main market in Europe grew more than expected. For 1997, most market analysts therefore prediet basieally a flat market with a decline in one or two of Autoliv's biggest markets. At Autoliv, too, the development was betterthan anticipated and we reached, for instance, penetration rates for pretensioners expected only in some years' time.
This means that Autoliv's development in 1997 could be more modest than in prior years. But at the same time, Autoliv willlaunch in 1997 the first product in a series of new side impact airbags for the head, and introduce new seat belt and airbag products. We will also continue the development of whiplash protections, roll-over protections and other im portant products which gradually will get ready for introduction over the next few years. The underlying trend should therefore re- main strong.
Sineecely yours,
~~-
Paul Charletyl
President and Chief Executive Officer
AUTOL!V 1996
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THE MARKEl
There are no official statistical data on the market for seat helts and airbags. According to our estimates, however, the world's vehicle producers purchased d ase to 1 O billion worth of seat helts and airbags in 1996. The year's market growth is estimated to have been almost 15%.
THE SEAT BELT MARKEY
The principal source of market growth for seat helts increas- ingly stems from belt systems becoming more sophisticated, with helt pretensioners, aurornatic height adjusters, and Jately with load limiters. In the industrial countries a growing number of cars are also being equipped with three complete retractor seat helts in the rear seat.
In other countries sales are boosted both by rapid growth in vehicle productian and a switch to western safety stan- dards in new cars, same of which are exporred to the U.S., Europe and Japan. In Asia alone (exduding Japan) productian is expected to increase from close to 6 million light vehicles in 1996 to about 9 million by the year 2000.
For Autoliv, auto productian in Europe remains the most
G
AUTOLIV 1996im portant factor. In this area of the world, auto productian is expected to increase by close to 2% per year until 2000.
THE AIRBAG MARKEY
The world marker for airbags is growing primarily as a result of the rapidly rising rate of installation of frontal airbags.
Upgrading of the systems to "intelligent", adaptive bags has still not had any impact on the growth, and the market for side impact airbag modules was only worth approximately USD 100 million in 1996, campared with almost USD 5 billion for the frontal module market.
In the U.S. the penetration rate in light vehicles is approach- mg 100% on the driver's side and is exceeding 80% on the passenger's side. The potential for growth is consequently lower than in other markers. From September 1997, dual air- bags will become manciatory in all passenger cars, and one year later in alllight vehicles.
About 50 million of the 220 million light vehicles in the United States are equipped with one airbag, and 30 million have dual airbags.
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The rate of installation has risen sharply in Europe as well, from almost zero in 1990 to a rate where two new cars out of three have a driver's side airbag, and close to every seeond ear has dual airbags. Over 25 million of Europe's 190 million light vehicles are estimated to be airbag equipped.
In Japan, the development started a little later than in Europe but today more than every seeond new Japanese ear is equipped with a driver' s airbag andevery fourth has dual (
airbags. Penetration rates are also growing fast in South Korea and Australia, but rates remain lower than in Japan.
In 1995, Autoliv obtained an order for airbags from the Malaysian company Proton. Several other emerging mar- kets are expected to follow soon.
,fr In 1995, Autoliv also startedas the first company in the
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1 world to iostall airbags in heavy trucks. Although i t is important to be a technology leader, the potential of this market is small, since heavy trucks account for approximately 2% of all motor vehicles produced.Side impact airbags for chest pi"otection and especially for head protection have the potential of becoming the next major 'gtowth area.
AUTOLIV'S MARKETS
The European markets account for about 90% of Autoliv's sales, with the Swedish market at 7%. The most important marketsare Gerrnany, France, Great Britain, Spain, Belgiurn and Sweden.
Autoliv has also expanded its operations in rnaekets out- side Europe, and in Australia and New Zealand market- leading positions have been achieved.
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In the United States, Autoliv North America began to manufacture seat helts four years ago. Sales have risen rapidly and today Autoliv accounts for one third of Chrysler's seat helt purchases, and U.S. sales currently account for 4% of the Group's revenues. In the United States, Autoliv has also received orders from Ford and General Motors for future deliveries of seat helts, and airbags for frontal and side col- lisions.The Japanese market was first cultivated through two joint ventures, but in 1996 Autoliv made one of the campa- nies a wholly-owned subsidiary and began to transfer rnore resources to Japan. The holding in the other company was sold. Currendy, Autoliv Japan Ltd makes airbags for Subaru, as well as for Daewoo in Korea, and, since the fall of 1996, airbags for the heavy truck makers Nissan Diesel and Isuzu.
The Japanese subsidiary also coordinates the Group's contacts with the Japanese auto makers' operations in the rest of the world, mainly in Europe and Asia, where substantial orders have been won.
In many emerging markets, such as Argentina, China, India, Malaysia, South Africa, Taiwan and Turkey, Autoliv has achieved good market coverage by early establishing joint ventures, and recently a number of new joint ventures have
been established in other emerging markers to give Autoliv the best presence on the world marker in its in dustry.
CUSTOMERS
Several of the world's largest auto manufacturers are among Autoliv's clients, and particularly those auto makers who have established a reputation for determined efforts in auto safety.
The most importallt customers are Audi, BMW, Chrysler, Citroen, Ford, General Motors/Opel, Hyundai, Mercedes-Benz, Mitsubishi, Nissan, Peugeot, Renault, Rover, Saab, Seat, Suzuki, Toyota, Volkswagen and Volvo.
Autoliv also has developrtlent contracts with other auto manufacturers, to whom commercial shipments have not yet begun, and the joint ventures have additional customers.
Autoliv typically accounts for between 25 and 75% of customers' purchases of seat belts and airbags, but in a few cases Autoliv has been selected to be the exclusive supplier of safety products.
Delivery contraers are usually divided among the different ear models of the customers, and each contract usually applies to the entire productian run of a particular mode!.
In the development of a new ear model, a process that takes several years, Autoliv in many cases functions as a development partner. This means that Autoliv takes the ini- tiative in creating new safety-enhancing products and assumes responsibility for adaptation and evaluation of the systems.
COMPETITION
Autoliv estirnates that it and its joint ventures account for close to 20% of the ear makers' purchases of ear occupant restraint systems. Only the American company TRW has a higher market share. In terms of sales, the American company Morton, and the Japanese company Taka ta, are of about the same size as Autoliv. The U.S. company Allied Signal also actson the world market but is smaller.
In Europe, Autoliv is the leading supplier with a market share of close to 45% and with a larger share in seat belts than in airbags. In this market, the German campanies Petri and MST are significant competitors (especially in steering wheels) but they do not manufacture seat helts.
The market is distinguished by intense price competition.
Autoliv's main competitive tools are new innovative prod- ucts, high quality, delivery precision and good service.
~anufacturing and development resources close to the cus- tomers are also important.
It is also becoming more important to be a system supplier with the capability of delivering both seat helts and airbags, since these systems are increasingly integrated inta each other.
This competitive difference will become even more important in the next stage of development, when different types of protection for frontal and side collisions, rear-end collisions and roil-overs also will be controlied by a common, "intelli- gent" dectronie system, a Safety Systems Control.
AUTOliV 1996
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FRONTAL AIRBAGS
The first airbag was patented in the early 1950's, but it was not until towards the end of the 1980's that sales began to gain momentum, and thenasa result of a law in the United States on passive restraint systems in the front seats, i.e. air- bags or sea t helt~ that are put on automatically. The la w was later expanded, calling for dual airbags in all cars from September l, 1997, and from the following modelyear in all light vehicles.
PROTECTIVE EFFECT
According to the U.S. National Highway Safety Admini- stration airbags have saved 1,700 lives since 1987, a third of which were saved during the last year. The agency therefore fully expects further improvements as older cars are scrapped and the proportion of airbag-equipped cars in the United States increases.
Driver airbags are estimated to have reduced the number of fatal injuries in frontal collisions by slightly more than 20% and passenger airbags by slightly less than 20%, induding a 33% increased injury risk for children up to 10 years. Virtually all of these children and infants, however, have been unbelted, improperly belted or in rear-facing child seats. Children shall therefore always sit in the rear and, of course, be belted as all occupants.
With a combination of seat helt and airbag, the number of fatalities in frontal collisions can be reduced by 45-55%, and serious facial injuries by up to 75% for the most exposed occupants, the driver and front seat passenger.
PRODUCTS
Autoliv introduced its first airbag system in 1990. That sys- tem was designed to meet federal requirements in the United States, and is therefore optimized for unbelted occupants (although seat helts shall always be used). These airbags
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AUTOLIV 1996must therefore be relatively !arge. Volumes up to 70 liters on the driver's side and 160 liters on the passenger's side are not uncommon. Almost all of Autoliv's competitors sell only such systems- also outside the United States.
Autoliv has also devdoped an airbag system for markets where wearing a seat helt is compulsory. In this Eurobag system the airbags have a volume of 30-45 liters on the driver's side and 60-100 liters on the passenger's side. The price is lower and the system is lighter and less bulky. A dif- ferent propellant is also used for inflation, and the inflator contains less propellant, which makes the Eurobags less aggressive than U.S.-sized airbags. This "de-powered" system was introduced in 1992.
An airbag system consists of an dectronie control unit (ECU) and an airbag module. Among other things, the control unit contains a sensor, while the module essentially consists of a gas generator, a nylon bag and a cover for the steering wheel or the instrument panel, depending on whether it is a driver's or a passenger's side airbag.
Autoliv typically supplies entire systems, adapted to individual ear modds. In some cases Autoliv delivers only the airbag module and in other cases modules already mounted in the steering wheel.
Autoliv shipped more than six million airbag modules, (induding side impact airbags) in 1996, campared to close to five million in 1995.
SENSOR AND ELECTRONICS
Autoliv only uses its proprietary, single-point, dectronie control unit (ECU), if Autoliv is the supplier of the airbag electronics.
The ECU evaluates the signals from the sensor, which reacts to the change in speed in a collision, and determines if it is a serious collision, when the bag should be deployed or merely a nuisance bumping-into something in a parking Iot or a driveway. The ECU also decides, to the nearest one
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thousandth of a second, when the bag should be inflated.
Modern ECUs are usually located in the passenger cam- partment or in the steering wheel.
If the ear has seat helts with pyrotechnical helt pretensio- ners, they can be connected to the ECU. The two safety systems are then integrated, which gives the best protective effect. ·
Theconnection between the ECU and the gas generator must always remain intact, and it must be possible to turn the steering wheel several revolutions without the connection being interrupted. Autoliv has therefore developed a special connector coil or spool, which ensmes that the impulse from the control unit always can reach the gas generator on the driver's side.
INFLATORS AND INITIATORS
The airbag is inflated by a gas generator or inflator, whose propellant is ignited by an initiaror (or a squib). Most of the
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Airbag modu/e with the cover removed. Connector coil down to the right
A passenger airbag modu/e with the campressed gas m flator Autolzv startea to sei1 zn 1996, with Ford as the first customer.
iniriators are produced by externa! suppliers, but in 1996 Autoliv acquired one of its suppliers, NCS in France, via its inflator company Livbag. NCS offers both glass-to-metal and plastic sealed initiators.
The gas in the inflator is most often generared by a pyro- technic propellant. If the propellant is sodium azide, which so far has been most common, the inflators have heavy duty fil- ters to prevent ashes from escaping into the bag and to cool the gas. Autoliv buys this type of inilators externally.
In Euroflator, Autoliv's first proprietary gas generator, the propellant is instead based on Alfred Nobel' s combination of nitroglycerin and nitrocellulose. This gas generator has been developed and patenred by Livbag. Euroflator is used exclusively in Autoliv's Eurobag system. ·
In 1996, Autoliv introduced two inflators, intended for U.S.-sized airbags. The Glohoflatar is an advanced, solid- fueled, azide-free gas generator, which is 35% lighter and 50% smaller than traditional U.S.-sized inflators. lt uses a unique, patented, environmentally friendly and easy-to- handle composite as propellant, which will also be used in hybrid inflators.
The other new inflator is used in passenger's side air- bags and in side impact airbags. It is a hybrid gas generator where the bag is primarily inflated by campressed gas. It is smokeless and easy to handie and it can also be recycled.
This inflator has been developed and is produced by Autoflator in Sweden.
AIRBAGS
The airbag is made of nylon fabrics. It has vent holes in order to have the right amount of "give", allowing the occupant to
"land" softly. The bag is folded in a precise manner to take
up as little room as possible in the module, and yet be able to deploy quickly.
Autoliv's primary supplier of nylon bags is Autoliv Textiles, which consists of Airbags International in Great Britain and Svensk Airbag in Sweden. The first company has developed a unique, patented weaving technique, which makes it possible to manufacture the bag already on the 1oom rather than sewing it from indiyidual pre-cut pieces of textile. Svensk Airbag specializes on sewn bags.
COVERS
The airbag is capped by covers on the steering wheel and the instrument panel. Even though most of these covers are manufactured by other companies, they must be designed in cooperation with Autoliv and they must be manufactured to Autoliv's specifications.
In the future, more of the covers will be made at Autoliv's own plants and by Isodelta.
AUTOLIV 1996 ~
SIDE I MPACT PROTECTION
In 1994, Autoliv introduced the world's first side impact air- bag. Deliveries were initially only for certain cars of Volvo's 850 model, but have now grown to include all Volvo cars, Audi's A8 ear and some of Volkswagen's Passat and Golf cars.
In total, Autoliv has more than 40 different supply or deve- lopment contraers from at least 14 eustomers for various side impaet protection products. Autoliv is also working on more than ten programs, where final contraers have yet to be concluded. This means that Autoliv will eontinue to be one of the world's leading campanies in side impaet proteetion.
The mounting interest in side impact protection is due to the fact that one third of all fatalities and serious injuries to occupants are eaused by side collisions. The interest is also explained by new laws and test requirements. Starting in the 1997 rnadel year, all newearsin the United States must be able to withstand a side collision at 30 mph (about 50 km/h) with no serious injury to the oceupants. In Europe, similar legal requirements will become effective for the 1999 rnadel year for new ear models, and in October 2003 for all new cars. Several of today's au tomobiles do not meet these requirements. To re-design the ear to meet them is often expensive, and in many cases impossible.
Consequently, as earlyas towards the end of the 1990's side impact airbags will become very common in new cars.
Such a development is also Iikely since the price of a chest side impact airbag is less than half the price of a frontal airbag.
PROTECTIVE EFFECT
Current side impact airbags primarily proteet the driver' s and the front seat passenger's torsos in the event of a side colli- sion. The protective effect is obtained by keeping the occu- pants away from the impact zone, and dampening the blow from the intruding door because the bag is vented.
Autoliv's and the world' s first side impact collision system. Introduced in 1994 in Volvo's 850 mode/.
~ AUTOLIV 1996
With Autoliv's current side impact airbags, the risk for serious chest injuries is estimated to be reduced by more than 20 per- cent according to tests by independent testing institutes. A certain improvement in protection of the head is also obtained since the occupant is kept away from the side of the ear.
However, in order to get adequate protection of the head, special equipment is required. Such equipment is a prioritized area in Autoliv's current research and development.
DESIGN
Autoliv has succeeded in designing a system that allows the bag to be inflated within the required 12 thousands of a second, while there is still enough room (about 100 mm) between the door and the occupant. (In frontal collisions the corresponding time is 40 thousands of a second).
The high requirement for speed has made it necessary to develop a special sensor system and special gas generators.
SENSOR
The occupant is at greatest risk of sustaining in jury in a side collision if he or she sits on the side of impact and if the door or side of the ear is mangled. The sensor in Autoliv's side im- pact airbag system is therefore placed close to the occupant in the seat or in the side of the ear. The sensor is activated if the speed of the impacting vehide ismorethan 15-20 km/h.
The impulse is transmitred in less than five thousands of a seeond to the gas generators.
GAS GENERATOR
In the first side impact airbag systems, the gas generators are of the same type as in Autoliv's pyrotechnical seat helt pre- tensioners, but the amount of propellants is samewhat greater. ) In 1996, Autoliv Inflators introduced its seeond inflator for
In 1996 Autoliv started to supp/y Audi's A8 mode/ and VW' s Golf and Passat models with side-impact airbags. This airbag is shown with the cover removed and the gas generator opened.
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After the introduction in 1994 of the world's first side impact airbag, Autoliv is now in the process of developing several different protective devices for the head in side collisions . In the United States alone, such accidents cause 15,000 serious or fatal head injuries annually.
When inflated the Inflatable Curtain (IC) will cover the entire upper part of the ear' s side, cushioning the heads of the driver and all passengers seatednext to the doors- both front and rear. The IC could a/so proteet in roll-over accidents, not /east prevent ejections -a/so of unbelted occupants. The IC is stored above the door. The bag and its segments are manufactured using Autoliv's patented, one-piece-woven bag technology.
ITS (Inflatable Tubular Structure) consists of a u11ique nylon tube, which is instal/ed in the roof above the doors and is inf/ated by a gas generator to a diameter of ab out 15 centimeters. The system is being developed in cooperation with BMW and the American company Simula.
side impact applications. This SIGG-1 inflator is based on the same propellant as the Globoflator inflator. To meet the growing demand, a third side impact inflator from Autoliv Inflators will be introduced in 1997. This will be a hybrid inflator where the bag will be inflated mainly with campressed gas.
SIDE BAG
The bag module in Autoliv's system is mounted in the seat back-rest, which eonstitates optimal placement since the bag then will follow changes in position of the seat and the angle
Another development project is the combined Head Thorax Bag, in which an extra bag comes out of the regular side airbag that proteets the chest.
The Head Thorax Bag is mounted in the seat back.
of the back-rest. The bag therefore proteets both short per- sons sitting in a forward position and tall persons reclining the back rest and pusbing the sea t to its rear position, in spite of having a volume of only 12 liters. It is important for the bag not to be unnecessarily large in order to be inflated in time.
When the bag is inflated, it covers the cbest and a part of the occupant's abdomen. Other parts of the abdomen and the hip are protected by collapsible material in the door.
The bag itself is either sewn in nylon fabric by Svensk Airbag, or woven directly in one piece by Airbags International.
AUTOLIV 1996 ~
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SEAT BELTS
Two-point seat helts were introduced in the 1950's. Static three-point seat helts came into use towards the end of the 1950's, and were followed in the beginning of the 1970's by three-point retractor helts.
During the 1970's and 1980's laws were passed in most European countries, Australia, New Zealand and Japan making seat belt use manciatory in the front seat. Several countries have expanded the requirement to indude rear seats, too.
In the United States, the installation of seat helts is man- dated, but not the wearing of them in all states.
Also in emerging markets, such as India, seat helt legis- lation has recently been passed.
PROTECTIVE EFFECT
According to available statistics, the risk of fatal or serious injury is reduced by ahout 40%, if conventional three-point seat belts are used. In the United States alone, seat helts saved more than 9,000 lives and prevented over 200,000 serious personal injuries during 1994 according to the authorities.
Contrary to airbags, seat belts also provide protection in multiple collisions, roll-over accidents and to a certain extent also in side and rear-end collisions.
The modern belt systems manufactured by Autoliv have been developed to hold the occupant in the sea t in case of a collision. The purpose of the seat belt is also to distribute the force of the collision to the strongest body parts, the chest and the hip bones.
In high-speed collisions, however, rib and abdominal injuries may be suffered as a result of the very strong forces involved, especially if the sea t belt is not correctly positioned or worn too loosely. These risks are minimized with the latest systems developed by Autoliv, with e.g. belt preten- sioners and load limiters.
~ AUTOliV 1996
During 1996 Autoliv's wholly owned campanies delivered more than 35 million belt systems, whereof almost 15 million were equipped with helt pretensioners. Seat helts manufac- tored by Autoliv's joint venture campanies and licensees are additional.
Autoliv's seat helt systems and components are based on its own research and development, and all major products are manufactured by Autoliv, except for the helt webbing which is made by suppliers, among them an affiliated company.
BELT BUCKLES
The helt huckle consists of a locking tongue mounted on the seat helt webbing and a lock body attached to the car's body or to the seat it- self. The huckle must be able to withstand forces of up to two tons. 1t must be easy to open, also when the helt is very tight, which may be the case if a person is left hang- ing upside down in the belt after an accident.
Autoliv has developed a unique, patented huckle which is completely "g-force insensitive", i.e. i t will not open even if pulled in any direction with great acceleration forces. This has contributed to giving Autoliv an especially strong market position for buckle-mounted pretensioners.
BELT PRETENSIONERS
The less a ear occupant is thrust forward in a collision, and the gentler the seat belt "catches" the occupant, the better is the chance of surviving a collision. Autoliv has therefore developed helt pretensioners attached to the helt huckle.
Autoliv also offers helt pretensioners integrated with the helt retractor. The belt pretensioner tightens the belt the moment before the occupant is thrust forward relative to the ear in a collision.
The belt pretensioner can tighten the belt by up to 15 cm.
This could either be accomplished by a steel spring, activated by a mechanical sensor, or by a small pyrotechnical charge,
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Seat helts in the luggage campartment is a new application introduced by Autoliv in 1996.
activated by an electronic sensor, usually the same sensor as in the ear' s airbag system.
BELT RETRACTORS
The retractor stores unutilized belt we b bing and keeps it pro- perly tensioned. In a collision, the retractor locks, preventing release of webbing. All Autoliv rettactors have two sensors which work independently of the locking mechanism.
Autoliv has developed a series of retractors for increased safety and comfort, and for reduced manufacturing cost.
Y et another type of retractor, which will be even more cost- efficient, will be introduced in 1997.
BELT GRABBER
Autoliv has developed different belt rettactors with improved safety, comfort and efficiency. One of the latest innovations is the helt grabber, which prevents the so-called film-spool effect, which is when the helt is yanked out when the loops of rolled-up webbing are tensioned upon impact.
LOAD LIMITERS
To reduce the risk of rih fractures and other injuries, Autoliv began in 1995 to further enhance its seat belt systems by in- stalling load limiters in the retractors. The load limiter allows the helt to be pulled out if the force on the rih cage hecomes excessive. The airbag is used instead to absorh the excessive energy.
The load limiter is thus yet another example of how Autoliv comhines the different protective systems of the ear to achieve the best protective effect possihle.
HEIGHT ADJUSTERS
Height adjusters allow the adjustment of height of the shoulder helt, therehy enhancing the effectiveness of the seat belt as
weil as the ease and comfort of use regardless of how tall the occupant is.
Height adjusters are either mechanical or fully automatic.
Autoliv has also introduced a retractor with an integrated aurornatic height adjuster.
SEAT BELT BEAM
In many cars, installing a satisfactory sea t belt system for the middle rear seat is difficult. For hatch-back and station- wagon cars, where the problem is acute, Autoliv has deve- loped a beam with three complete 3-point retractor helts.
The beam, which is attached to the top of the rear back-rest, is able to absorb the energy from three adult passengers, but it also reinforces the car's body laterally, and provides passengers with unusually good side impact protection.
Luggage campartment safety is also improved, and installation at the ear plant facilitated.
The roto-pretensioner (right) introduced by Autoliv in 1996 is smaller, lighter and has a simplified design campared to a wnventional retractor pretensioner.
AUTOLIV 1996 ~
STEERING WHEELS
In the falJ of 1995, Autoliv acquired 49% of the shares out- standing of Isodelta, Europe's third largest maker of auto- motive steering wheels.
At the beginning of 1996, Autoliv exercised one of its options and increased its ownership stake to 77%. With the other option, Autoliv can purchase the remaining shares before June 30, 1999. Theseshares are held by the company's pre- sident and founder Jean Geron, who has led Isodelta since the start in 1967.
GOOD GROWTH
In 1996 Isodelta's sales amounted to MSEK 370. More than 30 percent of sales are exports from France. One reason for the rapid growth in sales since its start is the fact that Isodelta has been quick in developing steering wheels adapted to airbags.
Another reason is the fact that Isodelta was first in Europe as a supplier of leather-wrapped steering wheels as an original equipment manufacturer to the automotive industry.
Isodelta has several interesting customers. Aside from Autoliv, the largest are Peugeot and Citroen, Renault, Saab, Volkswagen and Volvo. Isodelta has 700 employees at its plant close to Poitiers in France. The more than 30,000 square meter facilities are ultra-modern.
A major portion of lsodelta's productian consists of automotive steering wheels, but the company' s product pro- gram also includes steering wheel covers for airbag modules, tools and certain gear shift lever products.
ADVANTAGES
Prior to the acquisitions oflsodelta, Autoliv and Isodelta had cooperated for a period of time. Isodelta ha d, among other things, supplied steering wheel covers for some of Autoliv's airbag modules. Thanks to the more intense interaction now commenced, it will become possible to deliver steering wheels with pre-installed airbags to the auto manufacturers, and integrate the airbag into the wheel already at the design stage, which will eliminare duplication of material, save weight and simplify the manufactoring process for the ear companies. This will also be an important step in the current trend in the auto industry towards "macro component sup- ply", which means that a small number of sub-suppliers are given responsibility for entire systems.
Autoliv's and Isodelta's cooperation also makes it possi- ble to bring Isodelta's products to new customers and new markers thanks to Autoliv's larger world organization. The world market for automotive steering wheels is worth about one billion dollars. Growth potential in the established markets exists for sales of steering wheels with such added features as cruise control and controls for radio, mobile telephone, etc.
Autoliv's major competitor in this business segment is the American airbag company Breed, which during the last two years has acquired three steering wheel companies, and TRW, which has acquired one steering wheel company.
Morton has started cooperation with a Japanese steering wheel producer. Autoliv's acquisition of Isodelta has thus set a trend in the airbag industry.
By delivering the airbag on the driver' s side pre-installed in the steering wheel to the u:~r assembly plants costs can be saved. These are some examples of such integrated steeri11g wheels from the Autoliv Group.
~ AUTOLIV 1996
(
At the beginning of 1996, Autoliv acquired the Swedish seat component campanies Hammarverken i Växjö AB and Hässleholm Automotive AB, and changed their names to Autoliv Hammarverken AB and Autoliv Mekan AB.
These companies now form the new key component group Autoliv Seat Sub-Systems, which primarily makes seat frames, back-rests, seat adjustment tracks and other load- bearing components for automotive seats. The most importallt customers for these products are the Swedish branch of the American company Lear, and the Belgian company ECA, who use the components in ear seats for Volvo.
The product program also includes knee collision pro- tection devices.
l
COOPERATION WITH AUTOLIVThese companies have developed seat height adjustments, used to raise and lower the height of the ear seat, and seat adjustment tracks. Thanks to the cooperation with Autoliv, the acquired campanies are able to offer their products to a wider range of customers in more markers.
In 1996, the companies' sales rose by 14% to MSEK 565, all of which went to externa! customers. Consistent with Autoliv's strategy, the resources for development and design at the new campanies have been strengthened since the change of ownership. The companies have 470 employees.
IMPORTANT PART
The ear seats of the future will be an even more important part of a car's safety system than they are today. Seat helts, for example, will in many cars be attached to the back-rest instead of the side of the vehicle. Such "Belt-in-Seat" systems, which Autoliv already has started to produce for some
SEAT COMPONENTS
Belt-in-seat (BIS)
Thorax side impact airbag
In the future ear seats will be integral parts of a ear' s safety systems
sophisticated BMW and Chrysler cars, bring the shoulder belt doser to the body.
However, many of today' s ear seats and seat anchors must be reinforced to allow attachment of the seat belt to the back-rest.
Autoliv had therefore already prior to the acquisition of the two seat component campanies developed a patented, stronger so-called recliner for the back-rest. Shipment of this unique recliner, or back-rest adjustment began during the fall of 1995 to Lear Seating for installation in Volvo's 850 mode!.
It will soon be used in all Volvo cars to increase their sa- fery standards even further, and also to increase comfort at the same time.
Another example of how ear seats are being integrated into the cars' safery system is Autoliv's new side impact air- bag. This unit is supplied to the auto seat makers and is in- stalled in front seat back-rests.
WHIPLASH PROTECTION
Autoliv has also developed a system to proteet against neck injuries in rear-end collisions. In order to realize this and other projects affecting ear seats, it is important for the Autoliv Group to have sufficient development and manufacturing resources in the area of ear seats.
Consequently, many of a car's safety systems will in the future be supplied tagether with the seat as one installation unit, both as a means of improving safery and in response to the ear makers' demand for "macro component supply"
and fewer suppliers.
Autoliv's interest in this arearelates to the safety and ma- nufacturing aspects, and not to complete seats.
AUTOliV 1996 ~
RESEARCH AND DEVELOPMENT
Each year approximately a quarter million ear occupants perish in ear collisions. The number of severely injured per- sons is about ten times as large.
Accidents not only cause a great deal of hwnan suffering, but also large expenses for care and rehabilitation, and lost income. In Sweden alone, these costs amount to USD 3-4 billion per year according to the standard estimates made by the National Road Administration. There is thus a dire need for measures to improve safety - and hence for further research and development.
MORE THAN ONE THOUSAND EMPLOYEES
During 1996 Autoliv invested about 6% (6) of sales in research, development and customer application, and the Group had 1,100 employees engaged in these areas.
Autoliv's research and development is based on the Company's own tests and trials as weil as injury staristics and general collision data. Reports from independent researchers at universities and technical institutes are another important source of information. The Group's research is also conducted in consultation with the Autoliv Technical Advisory Board, which consists of internationally recognized scientists in traffic safety and biomechanical research, as weil as with the safety design engineers of major ear manu- facturers.
MANY CRASH TRACKS
The Group' s joint research is concentrared to Autoliv Research in Sweden, while the development actlvities are divided among Autoliv's technical centers in France, Germany, Great Britain, Sweden, and the United States. These centers are all equipped with crash test tracks, where full-seale tests with complete cars weighing up to two tons can be perfor- med at speeds up to 50 mph. (In Sweden and the U.S. also with trucks up to 10 tons). In addition, Autoliv has crash tracks for full-seale tests in Australia and Spain.
With 12 crash tracks, including eight tracks for full-seale tests, Autoliv has more crash test resources than any other au- to safety company. Thesetest facilities and Autoliv's specialists are to a considerable extent utilized by Autoliv's customers.
Proximity of Autoliv's development centers to the most important customers is necessary to ensurethat Autoliv will be able to function as the customers' specialist and develop- ment partner in auto safety. At the German laboratory alone, more than 100 brand new cars are crash tested annually.
Mathematical crash simulations are performed in tandem with the crash tests.
Autoliv has identified and is mainly focusing on five principal areas in its research and development. Of these areas of developments new sideimpact proteerlon systems are described on page 11. The other areas of special interest are New Seat Belts Systems, New Airbag Systems, Whiplash Proteetian and Roll-Over Protection.
~ AUTOLIV 1996
NEW SEAT BELT SYSTEMS
Consistent with the strategy to continually upgrade and im- prove its products and systems in order to maintain its leadership in seat helt technologies, Autoliv is working to make seat helts more efficient, more comfortable, lighter, smaller and more cost-efficient. Autoliv is, for instance, developing a new generation of load limiters which will be adaptive to the severity of the crash, the occupant's weight and other parameters in order to avoid rib fractures and internat injuries from the seat helt.
NEW AIRBAG SYSTEMS
In its development of the next generation of airbag systems, Autoliv has a great advantage in having advanced in-house expertise in key competence areas thanks to Autoliv Electronics, Autoliv Inflators, Autoliv Textiles and Autoliv Steel & Plastics. Although airbags have proven to be a very effective life-saving device, they can, if not properly used, cause injuries to occupants being too close to the dashboard or the steering wheel. Autoliv is working along two different Iines to reduce and hopefully eliminare these risks.
The "Gentie Bag" project aims at making the bag less aggressive (hut not less efficient) by re-designing several com- ponents in the current systems. The dashboard and steering wheel covers should open at a lower bag pressure. The in- flation process should be progressive and follow an S-curve, providing for a minimum level of release of gas before the bag emerges from the cover, followed instead by increased gas flow as the bag deploys and its vent holes are laid free. This will prevent very high pressures to build up in the bag and make it softer if it reaches somebody very early during deployment.
For the passenger side, where the need for an S-curve in- flator is greatest, Autoliv will use its Varioflator, a new type of hybrid gas generator where the bag is primarily inflated by compressed gas. Unlike other inflators, Varioflator, willnot have the drawback of a pressure peak immediately following the
Pressure
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•/In the fall of 1996, the head of Autotiv's crash test facilities in Germany, Doctor Bauberger (left), and the Vice President Engineering of Autoliv North America, Steve Fredin, brought Autoliv's crash test center in Detroit, Michigan, into operation.
ignition, which will make it possible to conteol the gas flow.
Thiswill not only reduce the risks for occupants, but will allow the use of lighter and less expensive fabrics in the bag.
For the driver side, Autoliv has developed a "dual-stage" in- flator, which uses two pyrotechnic charges to produce an S-curve inflation.
The "Adaptive Bag"' project aims at eliminating completely the risks associated with deploying airbags. This system will be
"intelligent" and will be based on advanced sensors and elec- tronics. It will be able to determine the presence of an occupant - or a child seat - and if the occupant is belted or not. The
"Adaptive Bag" should also make it possible to adjust the in- flation of the bag to, among other things, the severity of the
crash, the distance to the occupant, the weight of the occupant and characteristics of the ear' s seat helt system!
Autoliv is also continuously working on making airbag systems even more efficient, smaller, lighter, more environ- mentally friendly and more cost-efficient.
WHIPLASH PROTECTION
Rear-end collisions rarely lead to fatal injuries, hut they give rise to fully one quarter of all personal injuries - often with permanent impairment- and to sickleave and inability to work. They therefore cause huge costs, in addition to human suffering. In the United States, for example, these injuries account for 66% of all insurance claims for personalinjury sustained by ear occupants, and in Sweden 46% of all traf- fic disability cases are due to neck injuries, campared to 19% 10 years ago.
A similar crash test facility was brought into operation in the beginning of 1997 in Sweden. This Auto Safety Centerwill be led by its ManAger Kiell Karlsson (left) and Autoliv's Research Director, Doctor Yngve Hå/and.
Against this background, Autoliv has made whiplash neck in- jury research a priority area. Autoliv has also developed and received development contraers for systems judged to be very effective in preventing this type of injury.
The problem today is that the ear occupant sits with his head up to 15-20 centimeters ahead of the headrest. This distance is sufficient for the head to be thrust quickly back and forward in a rear-end collision. In Autoliv's system, the critical distance between the head and the head rest is reduced during a rear-end collision. This forward acceleration of the occupant's shoulders and upper torso is kept low until the critical phase of the neck's motion has been passed.
ROLL-OVER PROTECTJON
Roll-over accidents are becoming much more prevalent again with the increasingly popularity of sport utility vehicles, and other vehicles with a high center of gravity. The critical dis- tance between the head and the inner roof is also very small in many modern cars. Although seat helts could provide some protection in roll-overs, special systems are required for ade- quate protection.
As far as possible Autoliv's roll-over protection systems will be based on the existing or already planned safety devices.
The critical distance between the head and the roof can be further enlarged by activating the seat belt pretensioners also in roll-over accidents. Another very efficient product against roll-over injuries will be the Inflatable Curtain, which could reduce the very frequent injuries eaused by the head hitting the side window, the side pillar or-if the occupant is com- pletely or partially ejected from the ear - the ground.
AUTOliV 1996 ~
MANUFACTURING
Ueferantena.us:zeJchnung 1994
Som e of the awards by w h ich customers have ho no red Autoliv for its qua/ity and service.
Manufacturing close to the customers is often an important competitive advantage for the suppliers to the world's auto manufacturing industry since deliveries are often made "Just- In-Time" once or several times per day. The major auto makers are also starting productian in more countries and new parts of the world.
In order to serve the world's auto makers, Autoliv has therefore built up one of the most comprehensive productian apparatuses in its industry. There are currently 45 produc- tion plants in 23 ear producing countries. Of these plants 15 are wholly owned. In 1997, productian is also planned to start in Russia.
Assembly of seat helts takes place in 21 countries and airbags are assembled in seven countries, namely France, Germany, Great Britain, Japan, Malaysia, Spain and Sweden.
AUTOMATION
Low productian costs is another vital necessity for suppliers to the world's auto industry. Autoliv's manufacturing is there- fore highly automated, which allows productian also in the high-wage countries where the largest customers are located.
Autoliv has a separate company, Autoliv Automation, for development and productian of computerized assembly lines and other aurornatic productian equipment. Autoliv Automa- tion supplies Autoliv's subsidiaries and joint ventures exclusi- vely. The company is located in France and has 80 employees.
QUALilY ASSURANCE
Autoliv's products face extremely high reliability require- ments. The quality contra! system is therefore based on the
"zero-fault" principle, which means that no defective mate-
~ AUTOLIV 1996
rials, intermediate products or finished products are allowed to proceed to the next stage of productio n.
This means that Autoliv already in development of a new productian equipment must attempt to preclude all possible sources of faults and errors. The same is true for the development of new products. There is also a never-ending process of efforts to improve products as weil as productian processes, even after the start of production.
All of Autoliv's wholly-owned campanies with direct deliveries to ear manufacturers are ISO 9000 certified with one exception, and this company will be certified in 1997.
Most of the joint ventures are also ISO 9000 certified, with the remairring ones expecting to be certified during 1997.
Two campanies have already been QS 9000 certified, and the other major assembly campanies are in the process of being certified.
INCREASED INTEGRATION
Increased integration raises Autoliv's value added and helps to offset the effects of intense price competition. This inte- gration also makes Autoliv a better advisor to its customers, as Autoliv gains direct experience of the underlying product phases. Augmenting self-sufficiency in important compo- nents is therefore one of Autoliv's strategic goals.
AUTOLIV STEEL & PLASTICS
Autoliv Steel & Plastics had total sales of approximately MSEK 700, mainly to other Group companies. The opera- tions employ 800.
The business consists of Autoliv Composants in France, who makes meta! components for seat helts, Stakupress in
Germany and Precision Components in Great Britain, which make metal and plastic-clad components. Tensatar in Great Britain produces retractor springs for seat belts and Cosma in Italy manufactures plastic components, mainly for seat belt systems.
AUTOLIV TEXTILES
Autoliv Textiles had sales in 1996 of about MSEK 600, and 800 employees.
The group consists of Airbag International, which was started in 1989 as a joint venture to build productian capacity to meet the rapidly growing need for airbags. The company has also developed a unique and highly cost-effective weav- ing technique. The company became a wholly owned subsi- diary in 1994.
Autoliv Textiles also includes Svensk Airbag, which already before it was acquired in 1995, was Autoliv's most important supplier of sewn airbags in nylon. Airbags Internationafs speciaity is nylon bags woven in one piece for which it has developed a unique, patented method.
AUTOLIV ELECTRONICS
Autoliv Electronics had sales of MSEK 800 in 1996, all of which were interna! in the Group, and just over 400 employees.
Autoliv was early in developing its own electronics to control air bags, but manufactoring was contracted out since Autoliv lacked dectronies productian capabilities. In 1994, however, Autoliv formed Sagem-Autoliv tagether with one of Europe's leading electronics companies, SAGEM, in France, and this new company quickly became Autoliv's
most important supplier of electronics. In 1996, another joint venture was formed with another leading dectronies company, Nokia, also on a 50/50% basis.
The products to be developed by Autoliv Electronics will partially replace electronics from externa! suppliers, which will contribute to futther raising Autoliv's rate of integration.
For example, already during 1996, pyrotechnical sensors from outside vendors will be replaced by the first generation of electronic sensor units for these systems.
AUTOLIV INFLATORS
Autoliv Inilators had sales of MSEK 1,100, most of which were to other Group companies. The operations have 500 employees.
Autoliv Inflators was formed in 1996 when Autoliv transferred its wholly-owned gas generator company, Autoflator, to Livbag, its other gas generator company, and increased its ownership in Livbag to 51% from 49%. This joint venture was formed in 1994 tagether with the leading French explosives manufacturer S.N.P.E. (Societe Nationale des Poudres et d'Explosifs).
Following the formation of Autoliv Inflators, Livbag acquired the French company NCS, which produces both glass-to-metal and plastic-sealed ignitors. NCS has for man y years been one of Livbag's key suppliers. The acquisition will thus contribute to further raising the rate of integration in Autoliv.
AUTOLIV 1996 ~
ARGENTINA
Autoliv Slowik in Buenos Aires. A joint venture acquired in 1995.
Manufactures seat helts, also for Brazil.
AUSTRALIA
Autoliv Australia in Melbourne manu- factures seat helts. A crash center for full-seale tests was inaugurated in the beginning of 1996.
BRAZIL
Autoliv do Brasi/, a sales company in Säo Paulo which was started in 1996 to sell seat helts and other products, at present from Argentina and Europe
CHINA
Nanjing Hongguang Auto/iv. A joint venture with Nanjing Hongguang Airborne Equipment Factory (NHA- EF). Manufactures seat helts in Nanjing.
Changchun Hongguang Autoliv. A joint venture with NHAEF and Changchun Automobile Gaskets Factory. Manufactures sea t helts in Changchun in Manchuria.
FRANCE
Autoliv France, headquartered in Paris, manufactures seat belts and air- bags, and is responsible for the Group's development of pyrotech- nical seat helt pretensioners, and gas generators and dectronies for airbags.
The facilities, which include a crash Jaboratory for full-seale tests, are lo- cated in Gournay, north-west of Paris.
Autoliv Automation in Gournay de- velops and manufactures productian equipment for the Group's manufac- turing enrities.
Autoliv Camposants in Caudebec manufactures metal components for seat helts.
EAK in Mulhouse. A joint venture with ECIA. Manufactures seat helts and airbags.
Isodelta in Poitiers, Europe's third largest manufacturer of steering wheels. Also produces airbag covers for steering wheels.
Livbag, a company jointly owned with the leading ammunition manufacturer in France, S.N.P.E. Develops outside Paris and manufactures outside Brest, airbag inilators and rnicro gas genera- tors for seat belt pretensioners.
NCS in Survilliers, north of Paris, de- velops and manufactores initiarors for gas generators.
Sagem-Autoliv in Rouen. A joint ven- ture with SAGEM, the leading dec- tronies company in France. Develops and manufactures airbag electronics.
GERMANY
Autoliv GmbH, Dachau, manufac- tures Eurobags and develops, among other things, the Eurobag concept, helt grabbers, height adjusters and ITS - protecrion for the head in side collisions. Seat helts are manufactu- red in Elmshorn outside Hamburg and in Döbeln outside Dresden. The tech center is located in Dachau. A crash laboratory for full-seale tests also in Elmshorn will soon be ready.
Stakupress in Norderstedt, also out- side Hamburg, manufactures meta!
and plastic components for seat helts.
GREAT BRITAIN
Autoliv Ltd in Havant manufactures seat helts and airbags and has its own technical center with a full-seale crash track.
Precision Components in Chichester, manufactures meta! and plastic com- ponents for the Group's seat helt pro- duction.
Tensatar in Milton Keynes develops and manufactures springs for belt re- tractors and height adjusters.
AUTOLIV 1996 ~
Airbags International in Congleten (near Manchester) develops, weaves and sews nylon airbags. A new plant is being built on another site to ex- pand ca pacity.
HU N GARY
Autoliv Kft in Sopron manufactures seat belts for the auto industry in Hurrgary and is a contract manufac- turer of seat belts for Autoliv in Germany.
IN DIA
RHW-Autoliv in Bangalore is a joint venture with RHW India Ltd., who manufactures seat belts. Started a warehouse operation in 1996 outside New Dehli for customers in N orthem In dia.
INDONESIA
Autoliv Indonesia in Jakarta is a joint venture with automotive component manufacturer Birnarrtara Cakra Nusa, which began to manufacture seat helts in 1996.
ITALY
Cosma outside Torino, makes injec- tion-molded components, primarily for the Group's seat belts.
JAPAN
Autoliv
J
apan Ltd in Y okohama co- ordinates Autoliv's global contacts with the Japanese auto industry.Manufactures airbags in Kirihara.
MALAYSIA
Autoliv Asia Pacific, a regional office established in 1995 for coordinating activities in East Asia.
Autobelt in Kuala Lumpur. A joint venture with Autoindustries. Manu- factures seat helts.
Airbag Systems (Malaysia) in Kuala Lumpur. A new joint venture with Autoindustries to manufacture airbags.
MEXICO
Autoliv Mexico rnaved to a new factory in 1996 in Toluca outside Mexico City, where it manufactures seat belts.
NETHERLANDS
Autoliv BV in Landgraaf manufactures seat belts and integrated child seats, and delivers airbags from Autoliv Sweden.
NEW ZEALAND
Autoliv N.Z. in Auckland manulac- tures seat belts.
PHILIPPINES
Autoliv QB in Manila is a joint ven- ture with the auto seat manufacturer Qualibrand and Autobelt in Malaysia.
Will begin to manufacture seat belts in 1997.
SOUTH AFRICA
Autoflug in Johannesburg is a joint venture with Automotive Manu- facturing lovestments Ltd. Manu- factures seat helts.
SPAIN
Autoliv-KLE outside Barcelona and Autoliv-BKI outside Valencia manu- facture seat helts and airbags. KLE has a crash !ab for full-seale tests.
SWEDEN
Autoliv AB in Stockholm, is the Parent Company of the Group and its world headquarters.
Autoliv Research in Vårgärda is re- sponsible for the Group's research in, among other things, protection for side impact collisions, rear-end collisions and roll-overs. An advanced Auto Safety Center was brought into ope- ration in the beginning of 1997.
Autoliv Sverige, Vårgårda, manufac- tures airbags, seat helts and integra- ted child seats. The company is also responsible for the Group's develop- ment of, among other things, airbags according to American specifications.
Autoflator in Vårgärda develops and manufactures cold gas generators for the Group's airbag systems.
Autoliv Hammarverken in Växjö and Autoliv Mekan in Hässleholm manu- facture components for ear seats.
Autoliv Nokia in Motala. A joint venture with Nokia Audio &
Electronics. Develops and manufac- tures airbag electronics.
Svensk Airbag in Kungälv manu- factures sewn nylon airbags for air- bag systems.
TAIWAN
Mei-An Autoliv in Taipei is a joint venture with Holmsgreen. Manu- factures seat belts.
THAILAND
Autoliv Thailand in Bangkok is a joint venture with the automotive component manufacturer Thai Rung Union Car. Began to manufacture seat helts in 1996.
TURKEY
Autoliv Cankor in Istanbul. A joint venture with the Alaca family.
Manufactures seat belts.
USA
Auto/iv North America, with head- quarters in Detroit, Michigan, manu- factures seat belts in Indianapolis, Indiana. A technical center with crash tracks for full-seale tests was brought into operation in 1996.
AUTOLIV !996
