Autoliv In Pact To Consolidate Malaysian Auto Safety Suppliers

Autoliv Inc. will consolidate all automotive safety suppliers in Malaysia, including its own two local joint ventures and two Malaysian seat belt companies, into one company. Autoliv will own 49% of the combined company, which will be known as Autoliv HT, with joint venture partner Hirotako Holdings maintaining the remaining 51%. Consolidated will be Autoliv's Autobelt and Airbag Systems Malaysia, and Malaysian seat belt companies Dapat and Brimal. The new company will have 250 employees and sales of approximately US$25 million. The agreement is subject to approval by the Malaysian Government. After a sharp drop last year due to the Asian financial crisis, sales of passenger cars and light vehicles in Malaysia are recovering and are expected to reach 250,000 vehicles this year. Prominent car manufacturers in Malaysia are Proton, Nissan, Toyota, Honda, Mitsubishi, Volvo, Mazda, and Ford. The new company will have all of these vehicle manufacturers as its customers. Stockholm-based Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. The company has more than 60 wholly owned subsidiaries and joint ventures with 21,000 employees in 28 vehicle-producing countries.