Autoliv (ALV) Stock Analysis & Winston Score

Autoliv makes safety parts for cars. Its main products are airbags and seatbelts, which it sells to nearly every major automaker in the world, including Toyota, Volkswagen, Ford, and General Motors. Autoliv is the largest maker of automotive safety systems in the world, supplying parts that are legally required in most vehicles. The company earns money by selling these components directly to car manufacturers, so its revenue rises and falls with global vehicle production. Autoliv operates in more than 25 countries, with major manufacturing in Europe, Asia, and the Americas, and generates roughly $9–10 billion in annual sales. Its deep relationships with automakers and the strict safety regulations that govern its products create a strong competitive position, but the main risk is that a slowdown in global car production — due to economic weakness or the slower-than-expected shift to electric vehicles — would directly reduce demand for its parts.