Autoliv, a provider of automotive safety systems, has completed the sale of its Russian operations to automotive group Avtodom, reported Reuters.
The transaction details, including the sale price, remain undisclosed.
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The acquisition includes a facility in Togliatti, Russia, which previously manufactured a range of auto safety products, including airbags, seat belts, and steering systems.
Until its suspension in 2022, the Togliatti plant supplied safety system components to the Russian facilities of Volkswagen, Toyota, Nissan, Renault, Peugeot-Citroen, and other local firms, reported Interfax.
In April 2024, Autoliv CEO Mikael Bratt was cited by the news agency as saying that the company plans to divest the Russian business to an unnamed buyer, pending necessary approvals.
Avtodom had previously taken over all of Mercedes-Benz’s Russian assets.
Autoliv’s Russian subsidiary had been inactive, with operations on hold until the completion of this deal.
In the wake of the 2022 geopolitical tensions, Autoliv, along with other automotive suppliers, suspended its operations in Russia, which primarily served Western car manufacturers like Volkswagen and Renault.
These companies have since divested their Russian assets as well.
Despite reporting a net profit of RUR217.7m ($2.4m) in 2021 on revenues of RUR2.1bn, the company’s financial performance sharply declined following the production halts in the subsequent years.
Autoliv faced significant losses, amounting to RUR1bn in 2022 and RUR120m in 2023. The impairment of its idle facilities further contributed to losses exceeding RUR150m.
