Takata Corporation, one of Japan's biggest manufacturers of vehicle air bag systems, suffered a massive loss these past few months, as studies made by U.S. safety regulators compelled it to declare as many as 33.8 million vehicles defective. Experts are already calling this the largest and most costly recall ever in automotive history.

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U.S. Department of Transport (DOT) Administrator Mark Rosekind declared that, after their organization's study, made in conjunction with the National Highway Traffic Safety Administration (NTSA), there was conclusive proof that Takata's faulty air bags played a crucial role in at least five deaths and more than a hundred injuries. In fact, NTSA has been demanding the auto company to take responsibility for these accidents as far back as November of last year.

The recall, which involved passenger-side and driver-side air bags, is so large that it is said to cover more than 13 percent of all cars and trucks traveling across American soil today. The Detroit News mentioned that this issue could easily surpass the 1980 Ford Motor Co. transmission flaw debacle. In the latter case, the recall only involved the addition of a warning sticker.

Takata's air bags have been incorporated in many of the flagship models of Japanese auto companies Toyota, Nissan, and Honda. Unfortunately, all six Takata-linked accidental deaths have been in cars made by Honda. With high-cost fixes looming on the horizon, Honda reported a disappointing profit forecast last month.

In a press statement, NTSA administrator Mark Rosekind told motorists to continue driving their cars, even in the midst of this global issue. Nevertheless, he advised car owners to look up their vehicle identification number (VIN) online to see if it falls under the recall list.

The air bag manufacturer itself suffered a loss in shares by as much as 12 percent in Tokyo last Wednesday, and it traded even lower, at 9.7 percent, in the afternoon.

On the legal viewpoint, Takata is facing multiple class action suits across the United States and Canada. The firm is also undergoing a criminal investigation and regulatory probe. Reportedly, the U.S. action is currently being consolidated in a federal court in Miami.

TagsTakata, airbags, Recall, Toyota, Honda, nissan