---

Autoliv Starts Subassemblies in Tunisia

29 December 1999

Autoliv Starts Subassemblies in Tunisia

    STOCKHOLM, Sweden, Dec. 29 -- Autoliv Inc.
-- the worldwide leader in automotive safety systems
-- has completed the first phase in localizing some of its steering wheel
operations to Tunisia.  This part of the plan includes two production plants
in El Fahs and Ennadour, southwest of Tunis, for leather-wrapping of steering
wheels.  Construction of a third plant, which will be dedicated to foaming of
steering wheels, is also under way.  As a consequence, Autoliv will employ
close to 1,000 people in Tunisia as early as within one year.
    "The localization to Tunisia is an important part in Autoliv's cost
reduction program," explained Mr. Lars Westerberg, President and Chief
Executive Officer of Autoliv Inc.
    Autoliv entered the steering wheel business in 1995 by acquiring the
French company Isodelta, a leading European steering wheel manufacturer.
Subsequently, steering wheel production has begun in the United States and
will soon start in Brazil, Malaysia and Turkey.  In addition, Autoliv recently
agreed to acquire Izumi, the second largest steering wheel company in Japan.
Currently, Autoliv sells steering wheels to BMW, Ford, General Motors,
Mitsubishi, Peugeot, Citroen, Renault, Saab, Volvo and Volkswagen.
    Autoliv's goal in entering the steering wheel business was to offer
steering wheels with integrated driver airbags, in addition to traditional
airbag modules.
    "We have had a seamless start-up in Tunisia and our Autoliv employees
there have done an excellent job in cooperation with our staff at Isodelta,"
Lars Westerberg added.
    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 22,000 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.)