© Autoliv, Inc. All Rights Reserved.

2014 CAR Management Briefing Seminars

Purchasing and Automaker/SupplierRelationsAugust 7, 2014Steve FredinPresidentAutoliv Americas

© Autoliv, Inc. All Rights Reserved. August 7, 2014

As an automotive safety system

supplier,

engineering for Zero Defects is

mandatory

Supply Chain VisibilityQuality Culture

Cascading these expectations

further into the supply base is

critical

© Autoliv, Inc. All Rights Reserved. August 7, 2014

Proactive Campaign Prevention• Increase awareness of safety functions• Eliminate non-conforming events• Go-See-Prevent: Tier 1 → Tier 2 → Tier 3

Supply Risk Management Mapping• Global and annual• Detailed risk assessment• Included into global sourcing process

Supplier Recovery Plan• Prepared when sizeable risk identified• Pro-active recovery plans in case of catastrophic event• Preventative actions to reduce future risk

Supply Chain VisibilityInstilling a Quality Culture & Managing Risk

© Autoliv, Inc. All Rights Reserved. August 7, 2014

Supply Chain VisibilityBetter Insight to OEM Plans

All OEM’s plan to “win” in 2015…… >18M LVP! Five year outlook with transparency to Tier 3’s OEM technology roadmap

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier Relationship

STEVE FREDIN

President

Autoliv Americas

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier RelationshipInfluencing Factors

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier RelationshipReality Check

Safety Conservatism among OEM’s

Change is Risk and Risk may become Warranty

Continuous Improvement requires Change

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier RelationshipReluctance to Change

How do we want to evolve?

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier Partnerships

STEVE FREDIN

President

Autoliv Americas

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier PartnershipsOpen Minded … Introducing Innovations

Restraints Leader ? Vision Supplier

“Preferred” for what is supplied today, but there

are perceptions that established suppliers

cannot go beyond core competencies

“Not considered” for tomorrow’s innovation

© Autoliv, Inc. All Rights Reserved. August 7, 2014

OEM / Supplier PartnershipsMoving Forward

Advanced Technologies

Decreasing development cycles

Implementation

• Share Innovation Risk/Reward

• Early Engagement with Supplier

• Total Cost Approach

• Globalization

Autoliv

Every year, Autoliv’s products save

Over 30,000 lives