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Autoliv Supplies Car Seat Components to Russia

27 March 1998

Autoliv Supplies Car Seat Components to Russia

    STOCKHOLM, Sweden, March 27 -- Autoliv Inc.
, a worldwide leader in automotive safety, has won its first
contract for seat components from the Russian car industry.  The contract is
with Moskvich, Russia's fourth largest auto manufacturer, who has selected
Autoliv as its supplier of seat frames, head rest frames, safety belts and
plastic parts for seats in all its cars.
    Shipments of parts for 30,000 cars will start in September of this year.
These products will be delivered from Autoliv's facilities in Sweden.  After
approximately a year, when the volumes are expected to have increased
4-5 times, production will be localized to a new plant which Autoliv will
build in the vicinity of Moskvich's plant in Moscow.  At the same location a
new joint venture between Moskvich and Renault will manufacture the Renault
Megane.  The seat belts, however, will be assembled at Autoliv's Russian plant
in Dubna, North of Moscow, from the start.
    Autoliv began seat belt deliveries to Russia in 1996, opened its Dubna
seat belt plant in 1997 and expects this year to deliver half a million seat
belts to the largest Russian auto maker, AutoVaz, besides the seat belts now
agreed upon to Moskvich.  In addition, Autoliv has recently secured seat belt
contracts from other auto manufacturers in Russia.
    Following drastic reductions in the beginning of the 1990's to less than
one million motor vehicles produced last year, Russian car production has
started to recover and is expected to increase to at least 1.2 million by the
year 2000.
    "We are honored and delighted to have been selected by yet another Russian
auto maker to take part in the current construction of a modern auto industry
in Russia," said Gunnar Bark, Chairman and Chief Executive Officer of Autoliv
Inc.
    "Just three years ago we decided to target Russia as a key market for our
expansion plans, because we expected the country's car production to recover
and our customers in the U.S., Europe, Japan and Korea to set up transplant
production there.  Now when this is about to occur, our long-term commitment
is beginning to pay off in terms of new contracts," concludes Mr. Bark.

SOURCE  Autoliv Inc.