Autoliv Inc's Business Segments

Autoliv is the world’s leading supplier of automotive safety systems, with a broad range of product offerings, including passive safety systems and active safety systems that are sold within two operating segments, its Passive Safety segment and its Electronics segment. Passive safety systems are primarily meant to improve vehicle safety, and include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems passive safety electronic products, such as restraint electronics and crash sensors. Active safety systems are designed to make driving easier and more comfortable and to intervene before a collision in order to make accidents avoidable or reduce the impact. Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems, and passive safety electronic products, such as restraint electronics and crash sensors. Autoliv has combined all of Autoliv’s electronics resources and expertise in both passive safety electronics and active safety products into its Electronics segment while its Passive Safety segment includes all of its passive safety systems.

Including joint venture operations, Autoliv has approximately 78 production facilities in 27 countries and our customers include the world’s largest car manufacturers. Our geographical regions are Europe, the Americas, China, Japan and the Rest of Asia (ROA).

Autoliv considers its products to be components of integrated automotive safety systems.

Including joint venture operations, Autoliv has approximately 80 wholly or partially owned or leased production facilities located in 28 countries, consisting of both component factories and assembly factories. See “Item 2. Properties” for a description of Autoliv’s principal properties. The component factories manufacture inflators, initiators, textile cushions, webbing materials, electronics, pressed steel parts, springs and overmoulded steel parts used in seatbelt and airbag assembly, seat subsystems, steering wheels and our active safety and night vision systems and our other safety electronic systems. The assembly factories source components from a number of parties, including Autoliv’s own component factories, and assemble complete restraint systems for “just-in-time” delivery to customers. These factories also assemble our active safety and night vision systems. The products manufactured by Autoliv’s consolidated subsidiaries in 2010 consisted of approximately 121 million complete seatbelt systems (of which approximately 49 million were fitted with pretensioners), approximately 57 million side-impact airbags (including curtain airbags), approximately 28 million frontal airbag modules, approximately 12 million steering wheels, approximately 11 million electronic units (airbag control), approximately 0.4 million active safety systems and 0.1 million night vision systems.

 

The Company operates a single reportable segment focused on passive safety products, primarily airbags—including steering wheels and inflators—and seatbelts. It develops safety solutions for mobility and society, with passive safety systems designed to reduce the human impact of traffic accidents. Airbags deploy rapidly during collisions to cushion and restrain occupants, while seatbelts incorporate technologies such as pretensioners and load limiters to reduce the risk of serious injury in frontal crashes by up to 60%. The Company also manufactures steering wheels that comply with safety standards and provide functional and aesthetic features. The automotive passive safety market is influenced by light vehicle production (LVP) and content per vehicle (CPV). LVP has increased at an average annual rate of approximately 1.9% since 1997 and is projected to approach 92 million units by 2028. The Company has contributed to CPV growth by developing new technologies with enhanced value-added features, achieving a sales compound annual growth rate (CAGR) of about 5% since 1997, exceeding the market growth rate of approximately 2.8%. This performance is attributed to ongoing innovation in passive safety technologies and a strong emphasis on quality.