STOCKHOLM — Autoliv has agreed to buy the outstanding 40 percent of shares in its Japanese joint venture Autoliv Nichiyu Co., Ltd. The joint venture, which is one of Autoliv’s five manufacturing facilities in Japan, primarily produces airbag inflators for the Japanese domestic market.
Located in Aichi Prefecture, the company was originally formed in 1988 as a joint venture. All other Autoliv operations in Japan are wholly-owned subsidiaries. Autoliv Nichiyu Co. Ltd. will be re-named Autoliv Aichi Co. Ltd. as part of the deal, which is expected to close today. The business will have annual sales of approximately $35 million, of which virtually all is internal sales to other Autoliv companies.
“This investment reinforces Autoliv’s long-standing commitment to the Japanese automotive industry and will allow us to better coordinate our global inflator production strategy,” said Jan Carlson, president and CEO of Autoliv Inc. “Globally, approximately 22 percent of our sales are made to Japanese car makers and these customers are an important component of our global business.”
Since its inception, Autoliv Nichiyu has experienced steady growth and today, Autoliv holds an inflator market share of approximately 30 percent in Japan. Major customers include Toyota, Nissan, Honda, Mitsubishi, Mazda and Suzuki.
The production of light vehicles in Japan during 2009 was approximately 7.4 million units and is expected to reach 10 million units by 2013.
