"In that situation, they are more likely to move to a safer option than an untested player." Expanding production capacity for equipment such as airbags is cheap compared with other manufacturing industries, the industry source said. "If you have local production running, as Autoliv has in Japan, and the volumes are not too big you just add a few shifts or install a new assembly unit in the existing plant," the source added. "If that is not enough, you expand the factory building, and that doesn't cost much. It is really just adding floor space, a roof and a bit of heating or cooling." Valient CEO Scott Upham, who has worked at Takata and TRW, said spare capacity at Autoliv's Chinese plants could also be tapped to meet demand. But the Takata crisis highlights the potential hazards facing suppliers. As Autoliv ramps up volumes, it must retain its standards, said Mathias Leijon at Nordea Investment Management, which owns a 5 percent Autoliv stake.