Swedish automotive safety systems manufacturer Autoliv, one of the world’s largest producers of vehicle safety equipment, has announced plans to gradually shut down its manufacturing operations in Türkiye after more than 25 years in the country.
The company said it decided to close its four production facilities in Gebze as part of a broader strategy to optimize excess manufacturing capacity across its Europe, Middle East and Africa (EMEA) operations. Autoliv currently manufactures steering wheels, airbags, and seat belts at the Turkish plants.
According to the company, the closure process will be carried out gradually, with all manufacturing activities in Türkiye expected to end by the first half of 2028. Production will be shifted to other Autoliv facilities in the EMEA region.
The decision is expected to directly affect approximately 2,200 employees working at the company’s Turkish operations. Industry observers noted that the broader impact on suppliers and subcontractors could increase the number of jobs affected. Despite ending production, Autoliv said it will continue maintaining sales and support operations in Türkiye.
Autoliv supplies products to major automotive manufacturers operating in Türkiye, including Ford Otosan, Hyundai, Mercedes-Benz, Honda, BMC, and TOFAŞ, while also exporting components to multiple international markets.
The company estimated that the restructuring process would cost approximately $142 million, including around $129 million in cash expenses related mainly to severance payments and employee retention costs. Most of the financial impact is expected to appear in the company’s second-quarter 2026 results.
Autoliv stated that the move reflects structural changes in the global automotive industry, including slowing demand, rising costs, and the ongoing transition toward electric and software-defined vehicles. Analysts say global suppliers are increasingly consolidating production into larger regional hubs to improve efficiency and competitiveness.
Founded in Sweden in 1953, Autoliv reported revenue of approximately $10.8 billion in 2025 and employs around 67,000 people across 25 countries. The company is considered a global leader in automotive occupant protection systems and was among the pioneers of seat belt technology.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök