- Autoliv plans to close its manufacturing operations in Turkiye by the first half of 2028.
- The company expects a USD 142 million pre-tax charge from its EMEA capacity alignment strategy.
Autoliv announced on May 8 that it will gradually discontinue its manufacturing operations in Turkiye as part of a broader strategy to optimize production capacity across the EMEA region. The company stated that the decision follows an internal assessment indicating that manufacturing capacity in EMEA currently exceeds expected future market demand. The planned restructuring is aimed at aligning operations with long-term regional production requirements while utilizing existing facilities more efficiently across the company’s manufacturing network.
The company expects to record a final pre-tax charge of approximately USD 142 million related to the capacity alignment initiative. A significant portion of this charge is anticipated to be reflected during the second quarter of 2026. According to the company, the restructuring process will involve the gradual transfer of production activities from Turkiye to other existing facilities located within the EMEA region. The move is part of a broader operational efficiency strategy intended to streamline manufacturing activities while maintaining supply continuity for customers across multiple automotive segments.
Autoliv Manufacturing Transition Plan in Turkiye
Autoliv currently manufactures steering wheels, airbags, and seatbelts at its facilities in Turkiye. The company confirmed that approximately 2,200 employees will be affected by the phased shutdown of manufacturing operations. The transition process is expected to take place over an extended period to ensure an orderly relocation of production activities and operational adjustments within the region. The complete closure of manufacturing operations in Turkiye is expected to be finalized during the first half of 2028.
Key Details of the Capacity Alignment Strategy
The restructuring initiative reflects continued adjustments within the automotive supply chain as manufacturers and suppliers recalibrate production footprints based on evolving market conditions and demand forecasts. Autoliv emphasized that production currently handled in Turkiye will be absorbed by other facilities already operating within the EMEA region. The company has not announced any new manufacturing investments linked to the transition but indicated that the move is intended to improve overall operational efficiency and align production capacity with anticipated future requirements.
Autoliv Turkiye Manufacturing Closure Overview
| Category | Details |
|---|---|
| Company | Autoliv |
| Location | Turkiye |
| Affected Employees | Approximately 2,200 |
| Expected Charge | USD 142 Million |
| Closure Timeline | First Half of 2028 |
| Products Manufactured | Steering Wheels, Airbags, Seatbelts |
The decision highlights ongoing restructuring activity across the automotive components industry as suppliers adapt manufacturing strategies to regional demand forecasts and cost optimization goals. Capacity adjustments within the EMEA region continue to play a significant role in operational planning for global automotive suppliers facing changing production volumes and evolving market conditions. Autoliv’s phased transition approach is intended to support production continuity while consolidating manufacturing resources within its broader regional footprint.
Frequently Asked Questions
Why is Autoliv shutting down its manufacturing operations in Turkiye?
Autoliv is shutting down its manufacturing operations in Turkiye because the company determined that production capacity within the EMEA region exceeds anticipated future market demand. The restructuring is part of a broader capacity alignment strategy focused on improving operational efficiency and optimizing manufacturing resources. Production currently handled in Turkiye will be transferred to other existing Autoliv facilities within the EMEA region. The company expects the transition process to continue gradually, with the complete closure of manufacturing operations targeted for the first half of 2028.
How many employees will be affected by the Autoliv Turkiye closure?
Approximately 2,200 employees are expected to be affected by the phased closure of Autoliv’s manufacturing operations in Turkiye. The company manufactures steering wheels, airbags, and seatbelts at the affected facilities. Autoliv stated that the shutdown process will occur gradually over several years to support a structured transfer of production activities to other EMEA facilities. The company also expects to incur a pre-tax restructuring charge of around USD 142 million as part of the overall capacity alignment initiative.
Click above to visit the official source.