Parts Maker Rejects Demand to Recall Air-Bag Inflators Regulators Call Unsafe

An auto-parts manufacturer is rejecting a demand from federal regulators that it recall 67 million air-bag inflators that the regulators say are unsafe, setting up a potential legal battle that would have wide-ranging ramifications for the industry.

In a letter released publicly Friday, the National Highway Traffic Safety Administration said it had tentatively concluded that the inflators made by Tennessee-based ARC Automotive contain a “safety-related defect” and should be recalled. The inflators have been linked to exploding incidents that have killed two people and injured others.