Autoliv's Employees, Plants in Japan Safe

March 14, 2011
Company has four manufacturing facilities in Japan and four offices with nearly 1,700 associates

The company announced that its four manufacturing facilities in Japan and four offices with nearly 1,700 associates are safe and no injuries have occurred.

Autoliv's main facility is located in Tsukuba, 50 km northeast of Tokyo. It produces airbags and seatbelts and has a technical center with a crash test facility. Although the facility only suffered minor damages, the infrastructure around the plant and the electric power supply are unstable.

Autoliv has a steering wheel plant in Atzugi, 45 km southwest of Tokyo. In this area, electricity is shut down temporarily according to a rolling 12-hour schedule. Apart from these restrictions, the plant is operational. This plant also experienced some telecommunication problems during the earthquake.

Inflators for the airbag systems are produced in Taketoyo, near Nagoya. This plant is also in an area with electricity conservation schedules.

Autoliv has also a small plant in Hiroshima which produces airbag and steering wheel assemblies for customers in Western Japan. This plant is not subject to any production restrictions.

Aaccording 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 Autolivs 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.

See Also

Bank of Japan Unleashes Record Funds

GE Offers Help to Japan for At-risk Reactor

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