ALV Autoliv Dashboard

Risks

• We face risks related to the novel coronavirus (COVID-19) pandemic that have, and are expected to continue to have, an adverse impact on our business and financial performance
• The cyclical nature of automotive sales and production can adversely affect our business. Our business is directly related to light vehicle production (“LVP”) in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales
• Growth rates in safety content per vehicle, which can be impacted by changes in consumer trends and political decisions, could affect our results in the future
• We operate in a highly competitive market
• The discontinuation, lack of commercial success, or loss of business with respect to a particular vehicle model for which we are a significant supplier could reduce our sales and harm our business
• We may incur material losses and costs as a result of product liability, warranty and recall claims that may be brought against us or our customers
• Escalating pricing pressures from our customers may adversely affect our business
• We could experience disruption in our supply or delivery chain, which could cause one or more of our customers to halt or delay production
• Adverse developments affecting one or more of our major suppliers could harm our profitability
• Changes in the source, cost, availability of and regulations pertaining to raw materials and components may adversely affect our profit margins
• Our inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance
• Changes in our product mix may impact our financial performance
• We are involved from time to time in legal proceedings and our business may suffer as a result of adverse outcomes of current or future legal proceedings
• Work stoppages, slow-downs or other labor issues at our customers’ facilities or at our facilities could adversely affect our operations
• Our ability to operate our company effectively could be impaired if we fail to attract and retain executive officers and other key personnel
• Restructuring and efficiency initiatives and capacity alignments are complex and difficult and at any time additional restructuring steps may be necessary, possibly on short notice and at significant cost
• A prolonged recession and/or a downturn in our industry could result in us having insufficient funds to continue our operations and external financing may not be available to us or available only on materially different terms than what has historically been available
• Governmental restrictions may impact our business adversely
• Impairment charges relating to our assets, goodwill and other intangible assets could adversely affect our financial performance
• We face risks related to our defined benefit pension plans and employee benefit plans, including the need for additional funding as well as higher costs and liabilities
• You should not anticipate or expect the payment of cash dividends on our common stock
• Cybersecurity incidents or other damage to our technology infrastructure could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and operating results
• Third parties that maintain certain of our confidential and proprietary information could experience a cybersecurity incident
• Global climate change could negatively affect our business
• The exit of the United Kingdom from membership in the European Union may adversely affect our business and profitability
• Our foreign operations may subject us to risks relating to laws governing international relations
• Our business in Asia is subject to aggressive competition and is sensitive to economic and market conditions
• If our patents are declared invalid or our technology infringes on the proprietary rights of others, our ability to compete may be impaired
• We may not be able to respond quickly enough to changes in technology and technological risks and to develop our intellectual property into commercially viable products
• Some of our products and technologies may use “open source” software, which may restrict how we use or distribute our products or require that we release the source code of certain products subject to those licenses
• Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety or other governmental regulations
• Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market
• Negative or unexpected tax developments could adversely affect our effective tax rate, operating results and financial condition
• We may not be able to fully realize our deferred tax assets
• We could incur significant liability if the separation is determined to be a taxable transaction
• Potential indemnification obligations to Veoneer or a refusal of Veoneer to indemnify us pursuant to the agreements executed in connection with the internal reorganization and spin-off could materially adversely affect us