Autoliv Plans Full Closure of Turkish Plant by 2028

Autoliv will gradually scale down its manufacturing operations in Turkey and plans to fully cease production in the first half of 2028. The plant, located in the Kocaeli industrial zone in northwestern Turkey, currently employs approximately 2,200 people—about 4% of the company’s global workforce—and primarily produces automotive safety components such as steering wheels, airbags, and seat belts. The company stated that the related production activities will be transferred to other facilities in Europe and the Middle East. This restructuring stems from structural shifts in the global automotive industry, including slowing demand and rising costs. Autoliv noted that its manufacturing capacity in Europe, the Middle East, and Africa already exceeds projected future market demand. As a result, the company will record a pre-tax charge of $142 million, comprising $129 million in cash expenses related to plant closure, employee severance, and other restructuring costs, and $13 million in non-cash losses from impairment of fixed assets and inventory. Previously, Turkey was regarded as a low-cost manufacturing hub due to its proximity to Europe and preferential access to the U.S. market under a 10% baseline tariff. The country produces around 1.4 million vehicles annually, primarily for export, and hosts several of Autoliv’s original equipment manufacturer (OEM) customers. However, in recent years, Turkey’s automotive sector has faced significant pressure due to rising labor costs and a strengthening Turkish lira.