ISTANBUL, Turkey -- Sweden's Autoliv, the world's biggest maker of airbags and seat belts, sees car production in the second quarter somewhat lower than previously expected, CEO Lars Westerberg told Reuters on Friday.
"In general terms one can say that production volumes in Europe are a bit lower than we had expected after the first quarter," Westerberg said on the sidelines of a capital market day in Istanbul. "And chances are it will be the same story in the United States."
In April, Autoliv said it expected light vehicle production to increase by less than 1 percent in Europe and decline by 2 percent in North America in the second quarter.
Westerberg said that while volumes were likely to be somewhat weaker than expected in the current quarter, production is likely to strengthen slightly during the rest of the year.
"The development in the U.S. and Europe, as well as Japan, is pretty much at a standstill. But if we add the rest of the world, for instance Korea, we're still talking about an increase of about 3 percent for the full year," he said.
Autoliv in April forecast that second quarter sales would rise 10 percent assuming that the dollar stood at the same level versus the Swedish crown as in the previous quarter.
The firm, which unlike most Swedish blue chips reports its earnings in dollars, has seen profits boosted by a weaker greenback over the past couple of years as it has a majority of its sales in other currencies.
"We are not issuing a new forecast, but everybody understands that a strong dollar hits our sales," Westerberg said. "It looks worse now in light of the stronger dollar, but it does not alter our forecast."