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World-leading safety supplier Autoliv plans to gradually shut down its manufacturing base in Türkiye by early 2028, moving its steering wheel, airbag and seat belt production elsewhere in Europe and Africa, the company announced Friday.
The decision is expected to affect around 2,200 employees in Türkiye and generate a final pre-tax restructuring charge of approximately $142 million, including around $129 million in cash expenses mainly tied to severance payments and employee retention costs.
Autoliv stated that the move follows a broader review of its manufacturing footprint across the Europe, Middle East and Africa (EMEA) region, where management determined that existing production capacity exceeds expected future demand.
It noted that the automotive industry is undergoing major structural and technological changes globally, forcing suppliers to reassess production strategies and operational efficiency.
"As market conditions shift, we are continuously optimizing Autoliv’s manufacturing footprint in the EMEA region to better align our capacity with future demand and strengthen our long-term competitiveness," Autoliv EMEA President Magnus Jarlegren stated.
Jarlegren added that the company recognizes the impact on employees and plans to manage the process "in a transparent and respectful manner."
Despite the manufacturing shutdown, Autoliv will continue maintaining customer-facing operations in Türkiye, including sales and support units serving automakers in the local market.
The company first entered the Turkish market in 1999 and has since maintained manufacturing operations at two separate facilities in the Gebze district of Kocaeli province.
In its latest 2025 annual report, Autoliv classified Türkiye as a "best-cost country" within its global production network.
In 2025, Autoliv reported $10.8 billion in sales while operating in 25 countries with around 64,000 employees and more than 60 manufacturing facilities worldwide.
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