When it becomes clear that a defective auto part could lead to consumer harm, a manufacturer will usually recall the affected part on a voluntary basis. Although there are costs associated with a voluntary recall – and there are usually short-term public relations issues that stem from a recall announcement – the risk of harm-related liability is such that delaying recall efforts can leave a manufacturer particularly vulnerable to lawsuits and truly significant public relations issues if it does not act quickly to address a product-related concern that could lead to injuries or death.
Yet, some manufacturers choose to “roll the dice” and refuse to initiate recalls when reports of harm are brought to their attention. Usually, a manufacturer’s hope is that the cost of settling any harm-related legal action will be more cost-effective than initiating a recall. This is a truly dangerous approach, as – absent a formal recall – an untold number of consumers may remain unaware that a potentially injurious or deadly vehicle defect could be endangering their well-being.
ARC Is Refusing to Recall Potentially Defective Airbags
An example of this refusal-based approach to recalls is currently playing out in real time. The National Highway Traffic Safety Administration (NHTSA) has not just requested, but demanded, that ARC Automotive Inc. recall 67 million airbag inflators due to a defect the NHTSA believes poses an unreasonable risk of death or injury. When making its demand, the NHTSA explained that the affected inflators can “project metal fragments into vehicle occupants, rather than properly inflating the attached airbag.”
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