In response to many questions about the effect of the Japanese earthquake, Autoliv Inc. manufacturer of automotive safety systems has provided the following summary of the situation for its Japanese operations.
Autoliv has four manufacturing facilities in Japan and four offices with nearly 1,700 associates.
Fortunately, none of them have been injured by the earthquake, and only one of the facilities suffered minor damages. Also this plant can be brought back into operations when customer assembly plants resume their production. In addition, according to a preliminary supplier status assessment, Autoliv’s suppliers in Japan should also be ready to resume production.
As a result, the financial impact on Autoliv from the earthquake is expected to be small. The impact of lost production will depend on when customers will resume vehicle production, and if the customers will try to recover any lost production during the current production suspension.
The Japanese facilities account for 11% of Autoliv’s global production, and Autoliv accounts for approximately 20% of the Japanese market for airbags, steering wheels and seatbelts.
The infrastructure in the country remains potentially unstable and the ability to ship parts efficiently remains to be confirmed.