Delphi to sell North American safety assets to Sweden's Autoliv

MUNICH -- Delphi is selling its North American airbag, seat belt and steering wheel assets to Autoliv Inc., the world's No. 1 seat belt and airbag maker. Terms of the deal were not announced.

Autoliv said in a statement the assets included Delphi's steering wheel operations in Matamoros, Mexico, as well as its North American airbag and seat belt assets, which would be consolidated into existing Autoliv facilities.

A statement issued about the transaction did not identify specific U.S. operations being acquired.

In the statement, Autoliv CEO Jan Carlson said the deal "gives us an opportunity to provide our customers a seamless transition in supply of airbags and seat belts, as our own plants already are important suppliers to these customers.”

The transition is expected to occur during the next several months, the company said.

Delphi emerged from four years of Chapter 11 bankruptcy protection last month.

During the time, Delphi shed most of its U.S. factories and unionized work force to concentrate on its global electronics and climate control businesses. The supplier expects to post sales next year of less than $10 billion, compared with $22.59 billion in 2005.

Autoliv, based in Sweden, did not disclose the financial details of the deal, but said it expected sales at the units, which supply General Motors Co., Hyundai Motor Co. and Ford Motor Co., to total $125 million next year.

The transaction was expected to close by Dec. 31, Autoliv said.

Delphi ranks No. 7 on the Automotive News list of the top 100 global suppliers, with sales to automakers of $18.06 billion in 2008. Autoliv ranks 28th on the list with 2008 sales of $6.48 billion.

Reuters contributed to this report

(Stockholm, November 17, 2009) --- Autoliv Inc. (NYSE: ALV), the worldwide leader in automotive safety, has agreed to acquire North American airbag, seatbelt and steering wheel assets from Delphi.

Earlier this year, Delphi announced that it planned to exit its Occupant Protection Safety (OPS) business in North America, Europe and Asia by December 31, 2009. Under the terms of the agreement, Autoliv will acquire Delphi's steering wheel operations in Matamoros, Mexico. These operations are considered “world class” in the automotive and heavy truck industry. Delphi's North American airbag and seatbelt assets will be consolidated into existing Autoliv facilities. This transition is expected to occur during the next several months.

“We are particularly excited to have the opportunity to improve our vertical integration capability and competence in steering wheels in North America. The agreement also gives us an opportunity to provide our customers a seamless transition in supply of airbags and seatbelts, as our own plants already are important suppliers to these customers,” stated Jan Carlson, CEO and President of Autoliv.

Existing customers include General Motors, Hyundai, Ford, Daimler and Navistar with expected combined sales of approximately US$125 Million in 2010. The transaction is expected to close by December 31, 2009.