Sweden's Autoliv sells Russian business

STOCKHOLM: Swedish auto supplier Autoliv has sold its Russian business to local automotive group Avtodom, which has already snapped up German carmaker Mercedes-Benz's former plant in the country, Russian corporate records showed on Friday.

Autoliv said the transaction had now been finalised, declining to disclose the price.

More than a thousand Western companies have exited Russia since it invaded Ukraine three years ago, often selling for nominal amounts as Moscow has demanded discounts of at least 60%.

U.S. President Donald Trump's push for a quick deal to end the war has sparked speculation about whether firms might seek to stay in Russia or even return, but none have yet announced plans to do so, and the fate of those companies seized by Moscow may give them pause for thought.

Autoliv, the world's largest producer of auto safety gear, was manufacturing airbags, seat belts and steering systems at its plant in Togliatti around 1,000 km (621 miles) from Moscow and where Russia's largest carmaker Avtovaz is based.

Autoliv CEO Mikael Bratt told Reuters in April 2024 that the company planned to sell to an undisclosed buyer, but needed approvals that it expected to take a few months. Exit deals from Russia can often take far longer.

Car dealer Avtodom, which purchased all Mercedes-Benz's Russian assets in April 2023, became the new owner of Autoliv's Russian subsidiary on Thursday, the corporate records showed. Details of the ownership transfer were first reported by Russia's Interfax news agency.

Avtodom declined to comment.

Autoliv said its operations had been dormant, awaiting the transaction's completion.

"The sales process took longer than anticipated due to the applicable approval process," Autoliv said.

In February 2022, Autoliv, along with other companies, suspended its Russian operations supplying car parts for Western manufacturers, such as Volkswagen and Renault. Those carmakers have also sold their assets in Russia.