As a myriad of auto manufacturers face the specter of another large-scale air bag recall, they have begun robust lobbying efforts to prevent it. These companies, including renowned names like General Motors Co. and Ford Motor Co., have argued to the National Highway Traffic Safety Administration (NHTSA) that there is insufficient evidence to prove that certain components, notably the inflators, from ARC Automotive Inc. are defective.
Reports have been made about air bag inflators caused by a crash, which when blown indicate the potential for injuring or killing passengers. These alarming incidents have led the NHTSA to push for a substantial recall, over and above the objections presented by ARC and several automakers.
However, such a comprehensive recall could have a staggering financial weight. This move initiated by the NHTSA, may lead to costs of nearly a whopping $10 billion for car manufacturers. Given the financial implications and the potential of a major shakeup in the auto industry, it is no surprise that these carmakers are pushing back against the proposed recall.
Major obstacles lay ahead for the NHTSA as they endeavor to push through an extensive recall. The regulatory entity will have to navigate not only the objections from ARC and the automakers but will also need to quell concerns in terms of repeating past recall mistakes. As the tug of war intensifies between the automakers and regulators, the scope and manner in which this recall proceeds are set to make nationwide reverberations.
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