What was an old munitions plant in Utah now owned by global auto supplier Autoliv is sending shock waves into auto plants around the world because the side curtain airbag inflators it made are defective. The explosive charge that releases the compressed gas that inflates the bag may not explode during an accident thereby rendering the airbag ineffective. Factories in the U.S., Canada, Mexico, Japan and China are affected by the growing recall.
The problem first showed up in China at a Takata plant when the explosive mixture that inflates the airbag failed an incoming batch test.
The latest companies affected by the safety defect on side airbag inflators are Nissan and Subaru. This follows recalls at Acura, Honda and Toyota. The National Highway Traffic Safety Administration said today that Nissan is recalling 2012 Model Versa and Altima cars. Subaru is also recalling 2012 model Legacy and Outback vehicles.
The Board of Directors of Autoliv, Inc. (NYSE:ALV, STO:ALIVSDB) – today raised the Company’s quarterly dividend to stockholders by two cents to 47 cents per share for the second quarter 2012, an increase of 4.4% from the previous quarter. Sales in 2011 grew by 15% to $8.2 billion. The dividend declared today will be payable on Thursday, June 7, 2012 to Autoliv stockholders of record on the close of business on May 23, 2012. The ex-date, when the shares will trade without the right to the dividend, will be Monday, May 21. Together with its joint ventures, Autoliv has 80 facilities with nearly 48,000 employees in 29 countries. Autoliv manufactures automotive safety products for all major automakers.