Info
Info

Autoliv Initiates Strategic Review of Separating its Business Segments

News

Autoliv announced that its Board of Directors has instructed management to conduct a strategic review of its operating structure with the intent to create separate companies of its current business segments, Passive Safety and Electronics.

Info

The intent is to create two publicly traded companies capable of addressing two distinct, growing markets with leading product offerings and thereby create additional value for shareholders, customers and other stakeholders as compared to the current, combined structure of Autoliv. The strategic review process will evaluate this and other options. Although the strategic review has been initiated there is no guarantee that the review will result in any transaction, including a separation or listing of the businesses.

"The current operational model has served Autoliv very well, creating tremendous value for its shareholders and other stakeholders since the initial listing on the Stockholm stock exchange in 1994. Over the last decade our Electronics business has grown and matured next to our world leading Passive Safety business and today we have two distinct, successful businesses, each with its own unique business drivers. We believe it's time to let them both individually maximize their potential," said Jan Carlson, Chairman, President and CEO of Autoliv.

Electronics consists of Active Safety Products (automotive radars, cameras with driver assist systems, night vision systems and positioning systems), Restraint Control and Sensing and Brake Systems. Its market (particularly in active safety towards autonomous driving) is characterized by a high pace of change and growth which requires an agile innovation and partnering model as well as significant upfront investments to capture future growth. It is estimated that the total available market for Safety Electronics will grow from around $20 billion in 2017 to more than $40 billion in 2025. The objective for Electronics is to capture a significant portion of that growth while continuously improving the profitability of the unit.

Electronics is one of the leaders in Active Safety today with one of the broadest and most advanced product portfolios in the industry. Over the last two years Electronics has further positioned itself to be a major player in automotive electronics, including the competitiveness of the product portfolio, becoming a qualified supplier with a high number of OEM's for active safety and entering into important partnerships with companies like Volvo Cars (Zenuity), NVIDIA and LiDAR experts Velodyne for the next generation of highly automated cars. In 2016, Electronics sales were $2.216 billion, with a target to reach $3 billion in revenue in 2020.

Passive Safety consists of airbag systems, steering wheels and seatbelts. Its market is characterized by stable growth and incremental innovation which requires the highest requirements on quality and manufacturing efficiency. It is estimated that the total available market for Passive Safety will grow from around $20 billion in 2017 to around $25 billion in 2025. During the same period Passive Safety is expected to outgrow the market and light vehicle production, which is expected to grow by close to two percent annually. The objective for Passive Safety is to remain the market and innovation leader while maintaining a high level of quality and capital efficiency and further improving its margin performance.

Passive Safety is the global market leader with a market share of 39% in 2016. Over the last 2.5 years Passive Safety's share of order intake has been around 50% or more indicating significant market share expansion ahead. Standalone, Passive Safety will have increased freedom to further optimize its performance. In 2016 Passive Safety sales were $7.9 billion, with a target to reach more than $10 billion in revenues in 2020.

If the separation takes place, the process is estimated to take around one year under most separation scenarios. Updates to the progress of the strategic review will be provided in a timely manner.

Autoliv has been reporting its Passive Safety and Electronics businesses as two separate segments since the beginning of 2016.



The Latest News, Brought To You By
Autoliv Initiates Strategic Review of Separating its Business Segments
Modified on Thursday 14th September 2017
Find all articles related to:
Autoliv Initiates Strategic Review of Separating its Business Segments
TaaS Technology Magazine
Info
Waymo Shares Its Self-driving Data For Research
Porsche Reveals The Interiors Of The Much Awaited All Electric Taycan
Volkswagen Begins Expansion EV Charging Stations At Its German Sites
BMW Group Pilot Plant Builds BMW INext Prototypes
CUPRA Reveals The Interior Of Its All Electric Concept
Steven Armstrong To Succeed Nigel Harris As President Of Changan Ford JV
Hyundai Teases The EV Concept『45』destined For The Frankfurt Motor Show
Moixa And EO Partner To Develop Solar Home Charging Solution
Rad Power Bikes Builds Their Most Affordable And Adaptable Ebike
Melinda Roylett Appointed The Head Of Uber In Britain And Ireland
Opel Becomes The First Car Manufacturer To Offer An Electric Rally Car
EVgo, Electrify America Join Forces To Increase Accessibility Of EV Public Charging In The US
Peugeot Opens The Order Books For E-208
BYD Showcases Its Luxury SUV At Pebble Beach
TomTom Launches New APIs To Beat EV Range Anxiety
ElectraMeccanica Appoints Former Tesla Executive As Director Of Sales
Volocopter Reveals Design For New Urban Air Mobility Aircraft
Waymo Begins Testing Its Autonomous Vehicles In Florida
Volvo Adds A PHEV Option For Its S60 Sedan Range
EasyMile’s EZ10 Driverless Shuttle Debuts In Renmark, Australia
Mahindra To Launch Three EVs In India By 2021
Unex V2X System-on-Module Integrated With NoTraffic Smart Traffic Management Platform
AGL Announces New Instrument Cluster Expert Group And UCB 8.0 Code Release
Yandex To Deploy Up To 1,000 Self-driving Cars In The Next Two Years
Info
Info
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the TaaS Magazine, the TaaS Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
 
X
Info
X
Info
{taasPodcastNotification}