Autoliv has finalised its joint venture with Nissin Kogyo to form Autoliv-Nissin Brake Systems (ANBS).
ANBS combines the current brake control business of Autoliv with a ‘carve-out’ of Nissin Kogyo’s automotive braking business.
ANBS will be part of Autoliv’s Electronics business segment (consisting of passive safety electronics products, ADAS products and brake control systems). Autoliv owns 51% of the joint venture and has management and operational control.
Autoliv will consolidate 100% of ANBS in its financial statements. Nissin Kogyo’s 49% share of the joint venture’s net income will be treated as a minority interest.
“Today is an important day for Autoliv,” said Autoliv chairman, president & CEO, Jan Carlson. “The formation of Autoliv-Nissin Brake Systems will allow us to offer state of the art brake control and actuation systems to auto manufacturers around the world.
“It will further enhance our role as the leading safety system supplier for the future car, well integrated with autonomous driving.”
Autoliv purchased 51% of the joint venture for JPY29.7bn (US$266m). ANBS sales and operating margin for the nine-month period April-December, 2016, is expected to be slightly lower than initially communicated, with sales expected to be in the range of US$400m-US$450m for the same nine-month period.
Beginning with the second quarter 2016 earnings release, Autoliv plans to disclose information about ANBS in line with the other units (ADAS products and passive safety electronics products) in the Electronics business segment.