STOCKHOLM — In response to a new Brazilian vehicle safety law, Autoliv Inc. has begun the construction of an airbag inflator plant at its Taubaté location near São Paulo. The new law applies a “phased in” approach starting in 2011, requiring all new vehicles introduced to have a driver and passenger airbag by 2013. By 2014, all vehicles sold in Brazil must be equipped with frontal airbags.
Gas generators or inflators – the devices used to inflate an airbag – are currently imported from Autoliv’s plants in the United States and Europe. However, demand in Brazil is expected to grow sharply during the next few years, necessitating localized production for this component, which typically makes up half the cost of an airbag.
The new facility will begin manufacturing airbag inflators mainly for driver and passenger side protection, and expects to increase its production for side-impact and rollover applications as consumer demand drives the local market.
Autoliv will invest roughly $8 million in the 22,600-square-foot facility. The new plant will increase Autoliv’s global inflator manufacturing capacity by roughly 7 percent.
Autoliv currently produces inflators in six countries – China, France, Japan, Romania, Sweden and the United States – and accounts for more than 35 percent of the global inflator market. The customers of these plants include not only Autoliv’s own airbag assembly plants but also assembly plants of other airbag manufacturers.
Cars continue to become more affordable in the Brazilian market and the number of potential car buyers is experiencing a marked increase. As a result, Brazil is on track to overtake Germany as the world’s fourth-largest vehicle market this year, according to Autoliv’s research.
