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Autoliv Increases Airbag & Seat Belt Capacity Plant

6 August 1998

Autoliv Increases Airbag & Seat Belt Capacity Plant also in Poland

    STOCKHOLM, Sweden, Aug. 6 -- Autoliv Inc.
, a worldwide leader in automotive safety, has
started the construction of a 10,000 square meter (111,000 sq. feet)
production plant in Olawa near Wroclaw, Poland.  The new plant will produce
textile cushions for airbag systems and assemble seat belt systems.
    A new subsidiary, Autoliv Poland Sp.zo.o, has been formed to run the plant
and expand Autoliv's business relations with the car manufacturers in Poland.
Start-up activities currently employ 30 people, while there will be more than
100 employees when the plant starts its operations next spring and more than
600 employees when the plant reaches full capacity towards the end of the year
2000.  The plant will increase Autoliv's current global production capacity of
airbag cushions by approximately 15% and Autoliv's global production capacity
of seat belts by close to 10%.  The textile cushions will be delivered to
Autoliv's airbag assembly plants in Europe.  The seat belt systems will be
produced for Autoliv Germany.
    The cost for the new plant is calculated to amount to just over
US $10 million.
    Car production in Poland is expected to increase by 50% from the
1997 output to 3/4 million light vehicles by 2001.  The most important vehicle
manufacturers in Poland are Fiat, FSO/Daewoo, Volkswagen, General Motors and
Ford, all of which already are customers to Autoliv in other parts of the
world.

    Autoliv Inc. develops and manufactures automotive safety systems for all
major automotive manufacturers in the world.  The company has 60 wholly-owned
subsidiaries and joint ventures with close to 20,000 employees in
27 vehicle-producing countries.  In addition, the company has eight technical
centers around the world, including 19 test tracks, more than any other
automotive safety supplier.  Sales in 1997 totaled US $3.3 billion and net
income US $185 million.  The company's shares are listed on the New York Stock
Exchange , its Swedish Depositary Receipts on the Stockholm Stock
Exchange (SSE: ALIV) and its stock options on the Chicago Board Options
Exchange (CBOE: ALV).