NEW YORK (
) -- Auto-safety supplier
has been awarded certain Delphi-supplied Daimler safety products, which could become a cash cow in 2010.
As part of the agreement, Autoliv will buy certain Delphi European airbag and steering wheel operations.
Autoliv expects the awarded safety business to fork in about $22 million in sales next year. On top of that, certain North American airbag, seatbelt and steering wheel assets the company agreed to buy from Delphi in November could generate $125 million in sales next year. Much of the handover will take several months to complete.
The airbag, seatbelt and steering wheel assets strengthens the company's already leading position in the seatbelt and airbag space while providing it more exposure to the North American end market, according to leading credit researcher CreditSights.
A few months ago, Delphi made it known that it would leave behind its Occupant Passive Safety business in North America, Europe and Asia before the end of the year.
Autoliv stock is flat on the day, having added 0.1% at $41.70 Monday morning.
In general, auto names recorded some of the largest stock gains in the first half of November, as second-half production levels in November increase materially, recovering from first-half production shocks while the industry undergoes an inventory rebuilding phase.
The researcher's aggregate of 40 names in auto and manufacturing in the first half of November shows average stock returns of 11.4% compared to the S&P 500 index's return of 5.7% in the same period.
Meanwhile, other automotive stocks have been trading in mixed territory Monday.
stock has advanced 1.4% to $24.
has fallen 1.1% to $8.20 and
has added 0.3% to $27.10.
-- Reported by Andrea Tse in New York
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