Chrysler bailed out of TRW, owing them allot of money. And then they sued TRW because they wouldn't give them anymore product without at least getting paid upfront for the new material. They said TRW violated their contract. Silly rabbit, you want to be paid?!? They did the same thing on brakes and steering also. Even if they did actually build something, they would not have anyway to pay until they sold the car.
Any idea what percentage of Autoliv's revenue comes from US automakers as opposed to European and Asian. Not that it makes any difference, being that we have a global, and not just a US recession going on right now.
Read the earnings call. Declining unit sales, materials (steel, magnesium) cost pressures, distressed suppliers, move to lower cars with less safety content and requiring product development, restructuring plan announced but details not worked out yet...lots of headwinds. And the auto market may become worse than forecast. Last recession ALVs earnings dropped substantially. This time, who knows?
All that said, I like ALV but if the economy worsens or stays down for long there will be better buying opportunities.