A Tennessee company could be heading for a legal battle with U.S. auto safety regulators after refusing a request to recall millions of potentially dangerous air bag inflators. The National Highway Traffic Safety Administration is demanding that ARC Automotive of Knoxville recall 67 million inflators because they could explode and hurl shrapnel. The agency says at least two people have been killed in the U.S. and Canada, and six others have been hurt as a result of defective ARC inflators. The recall would cover about one-quarter of the vehicles now on U.S. roadways. In a letter posted late Friday, the agency told ARC that it has tentatively concluded a that the inflators have a safety defect. But ARC responded that no defect exists.
