Sweden's Autoliv Cutting 850 US Jobs

STOCKHOLM, Sweden November 22, 2002; The AP reported that automotive safety manufacturer Autoliv will close two plants in the United States, the company said Friday.

The Stockholm-based company said its plants in Indianapolis and Denver will be phased out, eliminating 850 jobs.

The move is expected to save the company 5 million in 2003 and more than $20 million annually starting in 2004.

Autoliv said both plants, which make seat belts, will shift production to its seatbelt plants in Madisonville, Ky., and two plants in Mexico.

The Indianapolis plant will be closed, eliminating 350 jobs, in the next 12 months.

At the same time, Autoliv's North American airbag production will be concentrated in its two plants in Utah. A plant in Denver that makes airbag inflators will be closed.

The Denver plant, which currently employs nearly 500 people, was part of Autoliv's acquisition in 2000 of OEA, a producer of inflators and switches for airbags.

After the consolidation Autoliv will have nearly 7,000 workers in the United States and Canada, as well as 3,200 in Mexico.

The company's North American headquarters is in Auburn Hills, Michigan.