Autoliv said it was withdrawing its full year 2020 guidance until the effects of the COVID-19 pandemic could be better assessed.

It also said it was cancelling the dividend scheduled for 4 June, 2020 and suspending future dividends although the board would review such suspension on a quarterly basis.

It was also drawing down US$600m of cash from an existing credit line.

Executives were voluntarily reducing their base salaries by 20% for Q2 2020 and non-employee board members reducing annual base retainer by 20% for Q2 2020.

"Today we announce a number of additional actions taken by the company to continue to manage the effects brought on by the COVID-19 pandemic," said Mikael Bratt, President and CEO.

"The health and safety of our employees continues to be our top priority. We will continue to evaluate the changing environment and are prepared to do what is necessary to get us through this humanitarian and economic crisis to secure an even stronger company when the crisis is over."

The $600m is the remainder of an existing committed $1.1bn revolving credit facility from which it drew $500m on 19 March. The company's current cash balance is about $1.4bn.

Capital expenditure plans are under reviewed with the ambition to reduce spend in 2020 which is heavily dependent on customers' launch schedules and activities.

Working capital is being optimised through strict inventory control, close monitoring of receivables and close collaboration with suppliers.

Since the beginning of the year, Autoliv has had in place a supply chain financing programme which facilitates the relationship with key suppliers and provides for potential working capital benefits.

Autoliv continues to adjust production in response to the current situation, including temporarily closing some of its own plants in compliance with local government requirements and recommendations and to align with the shutdowns of customer production facilities.

In China, operations have gradually recovered to around 90% compared to this time last year. The production recovery has been in balance with customer demand recovery since mid February. In South Korea, Indonesia and Japan, the majority of the company's plants are currently operating relatively close to planned output.

In Europe, the Americas, India, Malaysia and the Philippines, almost all plants are currently closed. This is in line with our customers plant closures. Most customer plant closures are currently planned to be between two weeks and one month, though Autoliv expects some plant closures to be extended.

It is working on securing the supply chain as well as continuing the appropriate health measures required to ensure the safety of its employees so it is prepared to resume operations when customer plants are reopened.