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Business

Time: 2024-08-14

Automotive Industry Insight: Market Impact of Airbag Recall Concerns

Automotive Industry Insight: Market Impact of Airbag Recall Concerns
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Product Recall Concerns

The National Highway Traffic Safety Administration ( NHTSA ) has raised serious concerns about airbag inflators in 49 million U.S. vehicles , stating that they pose significant safety risks . The issue has been under investigation for eight years and has been linked to one fatality and seven injuries , prompting the agency to consider a recall . If the recall proceeds , it would be the second - largest in U.S. history , affecting vehicles assembled by 13 automakers . The NHTSA highlighted that inflators produced by ARC Automotive and Delphi Automotive could rupture , sending metal fragments flying , leading to potential injuries or fatalities.

Automotive Industry Insight: Market Impact of Airbag Recall Concerns

Common sense demands acknowledging that metal shrapnel projecting at high speeds and causing injury or death presents an unreasonable risk to safety , NHTSA said.

Automotive Industry Impact

Major automakers like General Motors , Toyota Motor , and Volkswagen , as well as the two airbag manufacturers , have expressed opposition to the NHTSA 's recommendation for recalls . General Motors , for instance , stated that the evidence does not justify an additional recall beyond the vehicles already included in existing recalls . However , Reuters reported that at least 20 million GM vehicles could be affected by the issue . Stellantis , another automaker , reported just one rupture in 2009 , affecting 4.9 million vehicles with inflators at issue . Automakers and manufacturers have claimed that the risks associated with the problem are minimal , questioning the agency 's analysis and rationale for seeking a recall.

Industry - Wide Recall

The American automotive sector is on the brink of facing another industry - wide airbag recall , involving 51 million cars and multiple manufacturers . The NHTSA highlighted that parts from airbags made by ARC Automotive Inc. and the former Delphi Automotive Systems LLC were defective , potentially causing the airbags to explode in a crash . The defective inflators have caused injuries and fatalities in the US and Canada since 2009 , prompting the NHTSA to issue a notice urging automakers and suppliers to respond within 30 days . General Motors has already initiated a recall for nearly one million cars with dangerous airbag inflators , with other manufacturers like BMW , Ford , and Volkswagen also issuing recall notices.

Legal Responsibility and Verification

This is not the first attempt by the NHTSA to address the recall issue , as recommendations were made back in September 2023 . However , ARC Automotive rejected the recall request , while Delphi Automotive no longer operates independently , having sold its airbag business to Autoliv . The NHTSA is currently determining which entity holds legal responsibility for the company . Automakers and suppliers have been given a 30 - day window to provide feedback on the matter , as more manufacturers , including Stellantis , Porsche , Kia , and Hyundai , are expected to be impacted by the problem.

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