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Autoliv Builds New Plant in Romania

26 May 1999

Autoliv Builds New Plant in Romania

    STOCKHOLM, Sweden, May 26 -- Autoliv Inc.
, the worldwide leader in automotive safety systems,
will build a new plant for its operations in Romania.  The new production
facility will both replace the existing plant and provide additional
production capacity, especially for the rapidly expanding contract work
Autoliv Romania S.A. does for Autoliv's companies in European high-cost
countries.
    A 60,000 square meter site has been acquired near Brasov in Romania.  The
initial construction phase, which will start next month, encompasses a
3,000 square meter plant for seat belt and airbag assembly.  This capital
expenditure, which is calculated to amount to U.S. $1.5 million, will allow
Autoliv to double its work force in Romania to more than 100 employees.
    Autoliv Romania S.A. is the only local producer of seat belts to Romania's
car industry.  The most important vehicle producer in the country is Dacia,
which produces 100,000 light vehicles annually.  The other vehicle
manufacturer in Romania is Daewoo with current production of 35,000 light
vehicles.

    --  This new plant meets two of our strategy goals, explains Lars
        Westerberg, Autoliv's President and Chief Executive Officer.

    --  It not only strengthens our globalization process, but it also
        improves our possibilities to move more production to low labor-cost
        countries, which is necessary in our very competitive industry,
        concludes Lars Westerberg.

    Autoliv's subsidiary in Romania was recently certified according to both
QS-9000, a quality management standard required by most vehicle manufacturers
in the world, and VDA-Band 6.1, a similar standard developed by the German
vehicle industry.

    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 more than 21,000 employees in
28 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 1998 amounted to close to
US $3.5 billion and net income US $188 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).

    Contacts:  Lars Westerberg, +46-8-58-72-06-20, or Mats Odman, Dir. Corp.
               Comm., +46-8-58-72-06-23 or cellular, +46-708-32-09-33, both of
               Autoliv