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Autoliv Withdraws 2020 Guidance and Cancels Dividend

Auto News - Published on Mon, 06 Apr 2020

Image Source: Autoliv Coronavirus COVID-19
Worldwide leader in vehicle safety systems Autoliv Inc announced additional actions to manage the auto industry downturn caused by the COVID-19 pandemic. Since Autoliv’s March 19th press release, additional actions include:
Withdrawing the full year 2020 guidance until the effects of the COVID-19 pandemic can be better assessed;
Cancelling the dividend scheduled for June 4, 2020 and suspending future dividends although the Board of Directors will review such suspension on a quarterly basis; and
Drawing down $600 million of cash on our existing credit line.
Executives voluntarily reducing their base salaries by 20% for Q2 2020 and non-Employee Board members reducing annual base retainer by 20% for Q2 2020.

The rapidly evolving pandemic has upended the auto industry and customer projects for 2020. Autoliv is also navigating the same challenges other companies are facing in predicting the overall impact the pandemic will have on the auto industry this year. Given the current environment, the Company is withdrawing our previously issued 2020 guidance.

Autoliv continues to adjust its production in response the current situation, including temporarily closing some of its own plants in compliance with local government requirements and recommendations and to align with the shutdowns of customer production facilities.

In China, our operations have gradually recovered to around 90% compared to this time last year. The production recovery has been in balance with customer demand recovery since mid-February. In South Korea, Indonesia and Japan, the majority of the Company’s plants are currently operating relatively close to planned output.

In Europe, the Americas, India, Malaysia and the Philippines, almost all of the Company’s plants are currently closed. This is in line with our customers plant closures. Most customer plant closures are currently planned to be between two weeks and one month, though we expect some plant closures to be extended.

Autoliv is working on securing the supply chain as well as continuing the appropriate health measures required to ensure the safety of its employees so it is prepared to resume operations of its plants when customer plants are re-opened.

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Posted By : Yogender Pancholi on Mon, 06 Apr 2020
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