Autoliv Announces Additional Cost Reduction Actions

    STOCKHOLM, Sweden--Aug. 16, 2001--Autoliv Inc. today announced it is moving its North American airbag cushion cut and sew operations from Ogden, Utah, to its existing plant in Queretaro, Mexico. This move comes as part of the company's previously announced cost efficiency program.
    "Autoliv is committed to achieving significant cost savings through better utilization of resources," said Autoliv CEO Lars Westerberg. "Airbag cushion cut and sew operations are highly labor intensive. We can therefore reduce manufacturing costs for this process by relocating to our Queretaro facility. In Europe, we have already started to move this kind of production to Poland from Holland and other high cost countries."
    Autoliv plans to phase cushion production out over the next twelve months at its Ogden, Utah, location beginning with sewing operations in September 2001 and continuing with cutting operations through September 2002. The plant, which currently employs 500 associates, will continue to operate with approximately 40 people in non-production areas such as Research and Development, Marketing, Prototyping and Purchasing.