Headlines
Autoliv hikes sales forecast as tariff costs shift to automakers
Published by Global Banking and Finance Review
Posted on July 18, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 18, 2025
2 min readLast updated: January 22, 2026
Autoliv raises its sales forecast, shifting most tariff costs to automakers, with an expected 3% organic sales growth this year.
By Marie Mannes and Anna Chaberska
STOCKHOLM (Reuters) -Swedish auto supplier Autoliv raised its full-year sales guidance on Friday and said it had passed on most of its tariff-related costs in the second quarter, as it reported a profit for the period that matched expectations.
The world's largest maker of airbags and seat belts is mostly affected by tariffs between the United States and Mexico and Canada. U.S. President Donald Trump has threatened to raise tariffs on imports from both of these countries to 30% and 35%, respectively, from August.
U.S. tariffs on foreign auto imports are expected to raise car prices by thousands of dollars, reducing demand and hurting job growth, rattling an industry already struggling with a difficult transition to electric vehicles.
"We recovered around 80% of tariff costs in the second quarter, and we expect to recover most of what remains later in the year," CEO Mikael Bratt said, adding that the company remained confident it could continue to successfully receive compensation from its customers for tariffs.
"There's no logic whatsoever why the suppliers or the value chain should absorb this," he added.
Autoliv - customers of which include most of the largest automakers such as Volkswagen, Stellantis and Toyota - said it now sees organic sales growth this year of around 3%. Its previous forecast, last reiterated in April, was for 2%.
Analysts at Jefferies said in a note to clients that the results again demonstrated Autoliv's resilience in a quarter with significant tariff volatility.
Adjusted operating profit grew in line with expectations to $251 million from a year-earlier $221 million, with organic sales growth of 3%.
Its adjusted operating margin was 9.1%, a near industry-leading margin, according to analysts at Citi.
(Reporting by Marie Mannes and Anna Chaberska, editing by Anna Ringstrom, Kirsten Donovan)
Organic sales growth refers to the increase in sales generated by a company through its existing operations, excluding any revenue from acquisitions or mergers.
Operating profit is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.
An adjusted operating margin is a profitability ratio that measures the percentage of revenue remaining after covering operating expenses, adjusted for non-recurring items.
Explore more articles in the Headlines category
