Complex sentence: Recalls are costly to a company because they often entail replacing the recalled product or paying for damage caused by use, although possibly less costly than consequential costs caused by damage to brand name and reduced trust in the manufacturer.
Split into simpler sentences: Recalls are costly to a company because they often entail replacing the recalled product or paying for damage caused by use. This may be less costly than consequential costs caused by damage to brand name and reduced trust in the manufacturer.