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Autoliv Buys Japanese Steering Wheel Business

6 December 1999

Autoliv Buys Japanese Steering Wheel Business

    STOCKHOLM, Sweden, Dec. 6 -- Autoliv Inc.
-- the world-wide leader in automotive safety systems -
- has reached an agreement to acquire the business of Izumi, a leading
Japanese steering wheel manufacturer.  The acquisition, together with
Autoliv's strong organic sales growth, will make the Swedish-American auto
safety company one of the largest steering wheel manufacturers in the world.
    -- With Izumi we will be the only company in the world with production of
steering wheels in North America, Europe, Japan and South America, said
Autoliv's President and Chief Executive Officer Lars Westerberg.
    -- This worldwide capability is becoming increasingly important as the car
manufacturers in Japan and other countries are becoming more global and want
to have the same steering wheel with the same precision and quality all over
the world.
    -- With Izumi we will also become the only steering wheel manufacturer in
Japan with total safety system capabilities in-house, since we have already a
technical center and airbag manufacturing facility in Tsukuba north of Tokyo,
explained Mr. Westerberg.
    With sales of 9 billion yen (approx. US $80 million), Izumi has slightly
more than 20% of the Japanese steering wheel market. Current customers are
Mitsubishi, Suzuki, Mazda, Nissan, Daihatsu, Nissan Diesel and Isuzu.  The
main plant is in Atsugi in Kanagawa.  A subsidiary -- mainly for leather
wrapping of steering wheels -- is located in the Philippines. These businesses
with 600 employees, as well as Izumi's 50% interest in Nihon Steering
Industries Inc., are to be acquired at book value.
    The acquisition is expected to haveorable effect on Autoliv's
earnings already before synergies.  The transaction will be effected as of
January 1, 2000, when the name will be changed to Autoliv-Izumi Ltd.
Autoliv entered the steering wheel business in 1995 by acquiring Isodelta, a
leading European steering wheel company. Subsequently, steering wheel
production has been started in the US, and will start soon in Brazil, Malaysia
and Turkey. Currently, Autoliv sells steering wheels to BMW, Ford, General
Motors, Mitsubishi, Peugeot, Citroen, Renault, Volvo and Volkswagen.