Automotive security systems manufacturer Autoliv has decided to gradually terminate its production activities in Turkey. The decision, which covers the production of steering wheels, airbags and seat belts, will affect approximately 2,200 employees. The company’s production in Turkey will be moved to other facilities in the EMEA region by the first half of 2028. Autoliv Turkey is gradually closing its production. Autoliv has made a critical decision for Turkey in the process of aligning its production capacity in the Europe, Middle East and Africa region with future market conditions.
The company announced that it will gradually stop its production activities in Turkey. The decision; It includes the production of steering wheels, airbags and seat belts. Autoliv’s production in Turkey will be transferred to other existing facilities in the region, resulting in a complete closure. According to the calendar shared by the company, the complete termination of production activities in Turkey will occur in the first half of 2028.
Autoliv reported that this decision will affect approximately 2,200 employees. The facilities to which production will be moved are located in the EMEA region. The company stated that it will continue its customer-focused operations in Turkey. Therefore, the decision covers production activities in Turkey. The company’s structuring, which establishes direct contact with customers, is not coming to an end completely. The structural change in the global automotive industry and excess capacity in the region are behind the decision.
Autoliv management has determined that current production capacity in the EMEA region remains above future demand. After this evaluation, it was decided to gradually close the production network in Turkey. The financial impact of the company’s operations in Türkiye was also announced. Autoliv will write off approximately $142 million in pre-tax costs as part of the capacity arrangement. Most of this amount is expected to be recorded in the second quarter of 2026.
According to the announced items, the amount of 13 million dollars will be recorded as non-cash expense resulting from the deletion of fixed assets and stocks. Cash expenses of approximately $129 million will mainly consist of severance and employee retention costs. Low environmental expenses, equipment dismantling costs and contract exits will also be added to this. Autoliv EMEA President Magnus Jarlegren said that while market conditions are changing, the company is aligning its production structure in the region with future demand.
Jarlegren stated that the decision was a difficult process for the affected employees and that the company would conduct this period in a transparent and respectful manner.
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