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Major automakers, including General Motors Company (NYSE:GM), Toyota Motor Corporation (NYSE:TM), and Volkswagen AG (OTC:VWAGY), along with two air bag manufacturers, have reportedly expressed opposition to the U.S. National Highway Traffic Safety Administration's (NHTSA) recommendation to recall 52 million air bag inflators.
The NHTSA's suggestion for a recall arises from concerns that air bag inflators produced by ARC Automotive and Delphi Automotive might rupture, causing metal fragments to disperse.
This issue is linked to one fatality and seven injuries in the U.S., following an extensive eight-year government investigation. If enforced, this recall would mark the second-largest in U.S. automotive history, reported Reuters.
Automakers and manufacturers are contesting the NHTSA's proposal, arguing that the risks posed by these inflators are minimal, the report noted. ARC, in particular, reportedly highlighted the improbability of new ruptures, estimating less than one occurrence in the next 33 years, according to NHTSA's estimated failure rate.
According to the report, the contentious inflators have been used in vehicles manufactured from 2000 to early 2018 by 12 different automakers, including Ford Motor Company (NYSE:F), Mercedes-Benz Group (OTC:MBGYY), BMW (OTC:BMWYY), Hyundai Motor Company (OTC:HYMTF), and Kia Corporation.
NHTSA's call for a voluntary recall in May was initially rejected by ARC. General Motors, which had already recalled 1 million ARC inflators following a rupture incident in March, said NHTSA's decision lacked sufficient evidence, as per the report.
Both GM and Stellantis N.V. (NYSE:STLA) reportedly described NHTSA's actions as "arbitrary, capricious, and contrary to law."
Price Action: GM shares are trading lower by 0.36% at $35.74 in premarket on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via General Motors
