What is going on with ALV?
Autoliv (ALV) stock is down today after the auto safety company announced a partnership with Mersen, a global expert in advanced materials and electrical power, to create safety equipment for electric vehicles. Shares of ALV fell 3.3% to $94.12.
What does this mean for Autoliv Inc.?
The agreement between Autoliv and Mersen will seek to address a pressing need in the electric vehicle space - protecting passengers from high voltage systems in the case of an accident. Currently, electric vehicles contain about 500 volts of electricity, over 450 volts more than a traditional passenger car. The two companies will collaborate to create disconnect devices using Autoliv's "Pyroswitch," which can disconnect a power source up to 1000v in milliseconds, before fire or other damage can occur.
"Autoliv is committed to Saving More Lives and together with Mersen, we are committed to fostering technology that save lives" said Jordi Lombarte, Autoliv Chief Technical Officer. "Combined, we have more than 165 years’ of experience. By working together to make electric vehicles safer, we will accelerate the speed of innovation and impact for our customers and communities.”
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Autoliv is the global leader in passive safety components and systems for the auto industry. Products include seat belts, frontal air bags, side-impact air bags, air bag inflators, and steering wheels. The Renault-Nissan-Mitsubishi alliance is the company's largest customer at 16% of 2019 revenue, with Volkswagen and Honda accounting for 10% each. At 36% of 2019 revenue, the Americas was Autoliv's geographic region, followed by Europe at 31%. China and Japan each accounted for 11% of 2019 revenue.
