Autoliv Inc (NYSE:ALV) announces the first step to reduce its global structural cost, mainly in its European operations.
The company plans to streamline its geographic footprint and close sites in the U.K., Germany, Elmshorn, and Congleton, significantly reducing its cost base.
Last month, the company announced a reduction in its direct and indirect workforce by about 11% to cut costs.
Site Closure: Autoliv plans to close its Elmshorn site in northern Germany and consolidate the technical center and its activities to its existing Dachau, Germany facility by 2025, affecting over 500 jobs.
Also, the company plans to close its textile weaving facility in the U.K. and relocate production by 2025, affecting around 250 jobs.
Cost Reduction: Autoliv expects accrued cost reduction of around $105 million in Q2 2023 from these activities, with about 1,100 jobs to be affected in Germany, the U.S., the U.K., and Italy.
The company expects no impact on its Q2 and 2023 adjusted operating margin.
Related: Autoliv Reiterates Overall Guidance Ahead Of Investor Day, Launches New Passenger Airbag
Price Action: ALV shares are trading higher by 1.01% at $93.45 premarket on the last check Thursday.
