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Autoliv Starts Production in Brazil

16 September 1997

Autoliv Starts Production in Brazil

    STOCKHOLM, Sept. 16 -- Autoliv -- a
worldwide leader in automotive safety -- has started construction of a plant
in Brazil, the eighth largest automobile producing country in the world.
    The plant will be located in Taubate, 150 km north of Sao Paulo, the
principal car-producing area in Brazil.  The location was chosen because of
its proximity to customers and for infrastructure and labor reasons, as well
as for the support from local authorities.  In total, Autoliv do Brazil has
almost 100,000 square meters of land in Taubate for current and future
expansion.
    In the first phase, Autoliv will invest $6 million in a 6,700 square meter
building for seat belt and airbag production.  This plant is expected to be
operational by mid-1998.  Later, Autoliv do Brazil will also start production
of steering wheels and supply other countries in the Mercosur Free Trade
Market (Brazil, Argentina, Uruguay and Paraguay).
    Autoliv do Brazil was established in 1996 with an office in Sao Paulo.
    Brazil is one of the fastest growing car markets in the world, with a
growth rate of almost 20% anticipated this year from 1.8 million vehicles in
1996.
    The largest car manufacturer in Brazil is VW, followed by Fiat and GM.
    In Brazil, Autoliv currently supplies only Ford.  The products are
manufactured mainly at Autoliv's seat belt plant in Argentina.  However,
earlier this year Autoliv was selected by Mercedes-Benz as the seat belt
supplier for its A-class cars, and the Volkswagen group in Brazil decided to
initiate seat belt cooperation with Autoliv for the Audi A3, the Golf and the
Passat produced in Brazil.
    Autoliv, Inc. manufactures airbags for frontal and side-impact
applications; inflatable knee bolsters, seat belts, pretensioners, steering
wheels, seat components, child seats, sensors and electronics for virtually
all major automotive manufacturers in the world.  Autoliv Inc. has more than
50 wholly-owned subsidiaries and joint ventures with 16,000 employees in 25
vehicle-producing countries.  In addition, the company has 14 test tracks.
Sales in 1996 amounted to US $3.2 billion and net income to US $174 million.
The company's shares are listed on the New York Stock Exchange ,
its Swedish Depository Receipts on the Stockholm Stock Exchange
(SSE: ALIV), and its stock options on the Chicago Board Options Exchange
(CBOE: ALV)

SOURCE  Autoliv, Inc.