Auto suppliers have been hit by soaring raw material prices. Autoliv in January said cost inflation in 2022 was the worst in three decades, and that it was seeking to pass those costs on.
“The company continues to negotiate with its customers to secure pricing that reflects the extraordinary inflation and corrects structural price gaps,” Bratt said on Thursday.
“The highest priority and greatest challenge are the customer negotiations in Europe.”
Autoliv said in January cost inflation in 2022 was the worst in three decades, and that it sought to pass those costs on.
Bratt told Reuters it was price negotiations with customers based in Europe that were the most challenging, a region that has high inflation and a tough macroeconomic environment.
“What takes time is that these negotiations are very detailed, it is basically component by component, plant by plant, as we go through this,” he said.
Sweden’s Autoliv, whose rivals include ZF and Joyson Safety Systems, reiterated a full-year outlook given in April for a widening of its adjusted operating margin to around 8.5 to 9.0 percent.
Autoliv ranks No. 30 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $8.2 billion in 2021.