In the reading from the Book of Exodus this Sunday, the Lord delivers fair warning that if we harm the most defenseless among us, there will be consequences. The makers of air bags with allegedly lethal flaws, as well as the automakers who use them, are feeling the consequences after a string of fatalities involving the air bags. Consumer confidence in automakers has plummeted, as has the business value of the air-bag manufacturer, Takata Corporation.

Takata faces investigations into whether exploding shrapnel from its flawed parts are to blame for at least four deaths involving vehicles made by Honda, including a Florida crash that was initially investigated as a homicide because of deep gashes to the victim’s neck. Toyota Motor Corporation is advising U.S. owners to keep passengers out of front seats until defective air-bag parts are replaced.

The growing number of air-bag recalls also raises doubts about whether carmakers have learned to address defects quickly and comprehensively after General Motors Co.’s bungled ignition switch recalls and Toyota’s failures in 2009 and 2010 involving unintended acceleration. Honda is under separate probes over whether it underreported fatalities and injuries in the U.S.

“This undermines the credibility or confidence in driving, generally, and in cars,” Ashvin Chotai, managing director of researcher Intelligence Automotive Asia, said by phone. “There’s very little consumers can do about it. Of course they feel less confident about sitting in a car and they’ll be extra cautious, but beyond that, what can you do?”

The latest developments of the air-bag crisis have led to a sharp drop in the market value of Takata as well as eroding confidence in major automakers. The recalls of at least 4.7 million vehicles in the U.S. tied to Takata air bags during the past two years also involves Nissan, Mazda, BMW, and GM. The others have yet to follow Toyota in issuing warnings against sitting in front-passenger seats, a step that the Japanese carmakers took in their domestic market in June.

Homily hint: Those who claim there is too much government regulation of industry might pause to consider whether they would feel safe riding in an vehicle with a potentially lethal air bag. Our ultimate security resides only in God, but that does not mean we shouldn’t support intelligent oversight of businesses when public safety is at risk on a daily basis.

Source: An article by Craig Trudell, Ma Jie, and Yuki Hagiwara for Bloomberg BusinessWeek