Autoliv to Split Business into Two Listed Companies

Autoliv is one of the leading automotive suppliers and the senior management of the company has decided to split the business into two listed companies after a strategic review.

Autoliv announced in a statement that it will create two publicly traded companies. While one division will deal in passive safety equipment like airbag systems, the other will focus on electronics including advanced drier assistance software and radar products.

Commenting on the move, CEO Jan Carlson said in the statement that the electronics division has grown to the point where the company now has two successful but distinct businesses. The senior officials felt that the split was needed to help both businesses maximize their potential.

Autoliv projected that the separation process in the event that the move is implemented is likely to take about one year.

Autoliv is one of the leading manufacturer in the world of airbags and seatbelts, and after its main rival, Takata, collapsed due to the massive recall, has seen its business grow tremendously in the past two years.

The automotive industry has a long lead time and Autoliv is set to grow even more in the coming years as it begins to reap the full benefits of Takata being out of the fray.

The company will need an influx of funds to deliver the massive orders it has received and will also need to invest in innovative technologies for its electronics business. All these factors are likely to have prompted the move to split the business