STOCKHOLM, Sweden, July 13 – Swedish-American car safety equipment maker Autoliv said Thursday it aimed to close facilities in Germany and Britain as part of cost-cutting measure undertaken in response to pressure from soaring inflation.
In early June, the world-leading producer of products such as seatbelts and airbags announced that it would cut its global staff by 8,000 positions.
The company said Thursday that it aims to shut a site in Elmshorn, Germany, and consolidate its technical centre and most customer-facing activities to another facility in Dachau by early 2025.
The move will affect 500 employees, Autoliv added.
It added that it was “evaluating a possible closure” of its textile weaving facility in Congleton, Britain, which would affect around 250 employees, with the aim of relocating production by the end of 2025.
“In line with our previous announcement, these are the first actions in reducing our total workforce and important steps in the optimization of our geographic footprint,” Autoliv CEO Mikael Bratt said in a statement.
In June, Autoliv said it was negotiating to “secure pricing” as it struggles to pass on increased production costs to its customers — carmakers.
In Europe, the group’s strongest presence is in Romania, where it employs 10,500 people.
It has some 2,500 employees in Poland and around 2,000 each in Hungary and France.
Outside Europe, it employs 15,000 people in Mexico, 9,000 in China, 4,000 in Thailand and 3,000 in Turkey.
In April, the company announced it was building a new factory in Vietnam, set up to produce airbag cushions and fabric, where it expected to employ up to 2,000 people.
