COURAGEOUS GROWER
How shrinking set up Autoliv for growth outperformance
Impact
Fearless act
Spinning off its electronics business.
Sometimes the path to greater growth starts with spinning off a promising business segment to enable both it and the core to thrive.
In 2017, Autoliv took investors by surprise when it decided to spin off its promising, future-EV-focused electronics unit from its core airbags, steering wheel, and seatbelts systems business. Compelling strategic reasons argued in favor of separating the two businesses, including different capability needs, market dynamics, and limited customer and operational synergies.
Following the spin-off in July 2018, Autoliv’s annual revenues shrank, but they quickly recovered, steadily growing to achieve a record 27 percent increase in sales in the quarter ending June 2023.
7.4%
xTSR 2016–2021