Global automotive safety component leader Autoliv announced its decision to gradually phase out manufacturing operations in Türkiye. As part of a strategy to align Europe, Middle East and Africa (EMEA) production capacity with future market demand, the company will fully wind down its Türkiye operations by the first half of 2028. Approximately 2,200 employees will be affected. Production of airbags, seatbelts, and steering wheels in Türkiye will be halted gradually and shifted to Autoliv's other EMEA facilities. The company emphasized that the decision was driven by structural changes in the global automotive sector and overcapacity; ongoing review of the production network is becoming mandatory for long-term competitiveness and operational efficiency.
Autoliv ranks as one of the top three players in the global passive safety equipment market alongside Joyson Safety Systems and ZF; the company holds approximately one-third of the global automotive airbag market. Autoliv's Türkiye operations are part of the direct or indirect supplier ecosystem of Türkiye's OEM lines including Tofaş, Ford Otosan, Toyota Adapazarı, Hyundai Assan, Mercedes-Benz Aksaray, Renault Bursa, BMC, and Karsan. The Türkiye exit may not directly disrupt domestic OEMs' just-in-time airbag/seatbelt sourcing — Autoliv plans to honor existing contracts via EMEA reallocation through 2028 — but freight costs, customs transit times, and parts inventory requirements will be recalculated during this transition. Autoliv's strongest EMEA production assets are located in Romania, Poland, the Czech Republic, and Sweden; Türkiye production is most likely to be redirected to these locations.
From a supply chain perspective, the move is critical along four axes. First, this is one of the largest Tier-1 supplier withdrawals from the Türkiye automotive supply cluster in recent years — signaling Türkiye is on the losing side of the EMEA capacity consolidation. Second, the 2,200 employees and the dependent Tier-2/Tier-3 supplier network (sub-industry, logistics, tooling shops) will be affected in slices rather than at once due to the extended transition through 2028, which gives the local labor market slow absorption rather than shock. Third, Europe's automotive overcapacity is being shaped by Chinese EV exports, 2024-2026 demand weakness, and the European Green Deal electrification transition pressures — the Autoliv decision is the Türkiye reflection of this macro picture. Fourth, the parts sourcing map of OEMs will shift with this withdrawal: EMEA import share at Türkiye plants will rise during 2027-2028, making customs modernization and e-CMR investments critical. Türkiye's 2027 ITF presidency offers an opportunity to accelerate these infrastructure investments.
Key Takeaways:
1. Autoliv has decided to gradually phase out manufacturing operations in Türkiye.
2. Production of airbags, seatbelts, and steering wheels will be halted gradually through 2028.
3. Production will be shifted to Autoliv's other EMEA facilities; estimated target locations are Romania, Poland, the Czech Republic, and Sweden.
4. Approximately 2,200 employees will be affected; the transition is expected to complete in the first half of 2028.
5. Rationale: structural contraction in the global automotive sector + EMEA overcapacity + long-term competitiveness/efficiency requirements.
6. One of the largest Tier-1 withdrawals from Türkiye's EMEA automotive supply cluster in recent years; will create indirect ripple effects on the supplier ecosystem of OEMs such as Tofaş, Ford Otosan, Toyota Adapazarı, Hyundai Assan, Mercedes Aksaray, Renault Bursa, BMC, and Karsan.
7. Autoliv holds approximately one-third of the global airbag market and is one of the industry's top three players alongside Joyson Safety Systems and ZF.
