Autoliv to Shut Türkiye Plants, Shift Production to EMEA
Event summary
- Autoliv will discontinue manufacturing operations in Türkiye by H1 2028, affecting 2,200 employees.
- Production of steering wheels, airbags, and seatbelts will be relocated to other EMEA facilities.
- The move will incur a $142 million pre-tax charge, with $129 million in cash expenses for severance and retention costs.
- Customer-facing operations in Türkiye will remain intact.
- The decision follows a strategic review of excess manufacturing capacity in the EMEA region.
The big picture
Autoliv's decision reflects broader automotive industry shifts toward optimizing manufacturing footprints amid structural changes. The move aligns with global trends of consolidating production in response to evolving market dynamics and demand patterns. With $10.8 billion in 2025 sales, Autoliv's strategic realignment underscores the need for long-term competitiveness in a transforming sector.
What we're watching
- Capacity Utilization
- How quickly Autoliv can absorb Türkiye production into existing EMEA facilities without disrupting operations.
- Cost Management
- Whether the $142 million restructuring charge signals further efficiency drives in other regions.
- Market Demand
- The pace at which EMEA automotive safety demand evolves and whether it justifies current production levels.
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