Through the separation, the company will be able better address two distinct, growing markets with specific product offerings, the company said. The key drivers for the separation include different different pace of technology advancement in the two businesses, different skill sets of people throughout the organizations (leadership, engineering, sales), and different Sales growth rates over the near and long-term with limited customer or operational synergies and different market needs driving investments for growth and innovation (RD&E).
“With the strategic review concluded we now continue the process with full focus on a successful introduction of our two business segments as stand-alone companies during 2018,” said Jan Carlson, Chairman, President and CEO of Autoliv.
After the spin-off, Autoliv’s current Passive Safety segment would continue to operate under the Autoliv name, with continued listings on the New York Stock Exchange and Nasdaq Stockholm. The Electronics business will assume a new company name to be announced at a later stage. It is also expected to be listed in the United States and Sweden. Both companies are to be headquartered in Stockholm, Sweden.
The spin-off is expected to be completed during the third quarter of 2018 subject to market, regulatory and certain other conditions, including approval by Autoliv’s board of directors.