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Autoliv Expands in Brazil

2 December 1998

Autoliv Expands in Brazil

    STOCKHOLM, Sweden, Dec. 2 -- Autoliv Inc.
, a worldwide leader in automotive safety
systems, has started to build a plant for seat belt webbing at its recently
acquired site in Taubate, 130 km North East of Sao Paulo in Brazil.  The plant
will supply the South American markets.  Earlier this year Autoliv opened a
plant for seat belt and airbag assembly in Taubate.
    "The webbing plant is therefor the second step in our expansion plans for
Brazil," said Autoliv's Chairman and Chief Executive Officer Gunnar Bark.
    "Since Brazil is the world's eighth largest car market, it is essential to
have our own webbing production to be cost effective and to secure Autoliv's
high global quality standards," explained Mr. Bark.
    Autoliv's first expansion phase in Brazil cost almost $10 million, while
the capital expenditure for the current phase is estimated to amount to
$5 million.  The highly automated weaving plant will have 30 employees when
operations start mid next year.
    The new 3,500 sq. meter plant will be a unit of Autoliv do Brazil Ltda and
be managed by Autoliv's wholly-owned subsidiary Van Oerle Alberton (VOA) BV,
the world's largest manufacturer of seat belt webbing.  The Brazilian plant
will increase the global seat belt weaving capacity of Van Oerle Alberton by
5%.
    After a decline this year, light vehicle production in Brazil is expected
to increase from 2.2 million last year to 2.7 million 2002.  In Brazil,
Autoliv has sales or contracts for future supply to Audi, Ford, General
Motors, Mercedes-Benz, Renault and Volkswagen.

    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 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 Depository Receipts on the Stockholm Stock Exchange
(SSE: ALIV) and its stock options on the Chicago Board Options Exchange
(CBOE: ALV.)