Autoliv Inc. (NYSE: ALV) will discontinue its manufacturing operations in Türkiye and cut approximately 2,200 jobs, incurring a $142 million pre-tax charge to realign its European production footprint.
"As market conditions shift, we are continuously optimizing Autoliv's manufacturing footprint in the EMEA region to better align our capacity with future demand and strengthen our long-term competitiveness," Magnus Jarlegren, President of Autoliv EMEA, said in a statement. "We recognize that this change is difficult for affected employees and we will approach the situation in a transparent and respectful manner."
The automotive safety supplier expects the majority of the $142 million charge to be recorded in the second quarter of 2026. The total includes approximately $129 million in cash charges, primarily for severance and employee retention, and a $13 million non-cash charge for asset and inventory write-offs. Production of steering wheels, airbags, and seatbelts will be moved to other Autoliv facilities in the region.
The complete closure of manufacturing in Türkiye is anticipated in the first half of 2028. The company confirmed it will retain customer-facing operations in the country. This restructuring follows a period of operational review as the company, which posted $10.8 billion in 2025 sales, adapts to structural shifts in the global automotive industry.
The decision to exit Türkiye manufacturing is a significant step in Autoliv's ongoing optimization strategy. Investors will be watching the company's second-quarter results for the initial financial impact and any further details on the operational transition.
This article is for informational purposes only and does not constitute investment advice.
