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    How Kolon’s Vietnam Airbag Material Plant Will Impact Autoliv (ALV) Investors

    Simply Wall St·12/13/2025 18:20:50
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    • Kolon Industries has announced in the past that it will invest in a new Vietnam plant to produce airbag materials for Autoliv, creating a fully integrated airbag manufacturing base in Ho Chi Minh City expected to be operational by 2028 under a long-term supply arrangement.
    • This expansion deepens Autoliv’s access to critical airbag components in a cost-competitive region, potentially reinforcing supply resilience and supporting its global leadership in passive vehicle safety.
    • We’ll now examine how Kolon’s Vietnam airbag material plant, built around a long-term supply relationship, may influence Autoliv’s broader investment narrative.

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    Autoliv Investment Narrative Recap

    To own Autoliv, you need to believe that global adoption of passive safety systems will keep growing and that the company can protect margins despite pricing pressure, tariffs and uneven light vehicle production. Kolon’s Vietnam plant strengthens Autoliv’s airbag supply in a cost-efficient region, but it does not materially change the key near term swing factors, which still center on OEM pricing negotiations and how volumes hold up in North America, Europe and China.

    Among recent developments, the series of dividend increases through 2025 stands out in light of the Kolon agreement. While the Vietnam airbag material plant is about securing long term supply and cost efficiency, the higher dividend signals that management currently feels comfortable returning more cash even as it invests in capacity, efficiency projects and green financing such as the recent EUR 300 million notes.

    Yet investors should also be aware that persistent OEM pricing pressure and contract renegotiations could still...

    Read the full narrative on Autoliv (it's free!)

    Autoliv's narrative projects $11.8 billion revenue and $896.4 million earnings by 2028. This requires 4.2% yearly revenue growth and an earnings increase of about $181 million from $715.0 million today.

    Uncover how Autoliv's forecasts yield a $138.12 fair value, a 14% upside to its current price.

    Exploring Other Perspectives

    ALV 1-Year Stock Price Chart
    ALV 1-Year Stock Price Chart

    The Simply Wall St Community’s three fair value estimates, from US$126.97 to US$165.73, show how differently individual investors assess Autoliv’s prospects. When you weigh those views against the risk of slowing global light vehicle production, it underlines why many shareholders track both regional output trends and content per vehicle so closely.

    Explore 3 other fair value estimates on Autoliv - why the stock might be worth as much as 37% more than the current price!

    Build Your Own Autoliv Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.