TOKYO — Takata Corp's resistance to a US order to expand a recall of its air bag inflators is likely driven by a need to protect itself from legal liability, but risks longer-term business damage by alienating the public, experts say. Takata this week rejected a National Highway Traffic Safety Administration (NHTSA) demand to declare its inflators defective and call in vehicles US-wide for replacement. An existing recall is limited to a few hot and humid states. In a letter, Takata queried NHTSA's justification for the order while a cause for why its inflators can erupt with excessive force is still unclear. The Japanese firm left it up to automakers to decide whether to expand the recall. "Takata's approach reflects ignorance or denial of the reality that the court of public opinion can put you out of business long before a court of law decides about liability," said Jonathan Bernstein, president of California-based Bernstein Crisis Management. Takata's response drew criticism from US regulators and lawmakers. In Tokyo, government officials privately expressed shock and concern, with one bureaucrat saying it would be "disastrous" for Takata to fight NHTSA's demand as Japan frets about the broader reputational impact on its auto industry. – Reuters
