Transportation
Carmakers Fight Massive Air Bag Recall That May Cost $10 Billion
- Carmakers are pushing back, may face $10 billion in costs
- US regulators worry piecemeal response will repeat history
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Carmakers are lobbying against an extraordinary push by US regulators to force a recall of as many as 52 million air-bag inflators.
Companies like General Motors Co. and Ford Motor Co. said in letters to the National Highway Traffic Safety Administration released Wednesday that there’s no proof that the parts made by ARC Automotive Inc. are defective despite reports that some inflators have exploded in a crash, injuring or killing passengers. NHTSA is calling for a broad recall over ARC’s objections, a move that may cost carmakers up to $10 billion.