In an extreme example I expect that's precisely what would happen. Consider what's currently unfolding around the 737 Max. In the automotive space there's a long history of serious flaws that resulted in loss of life, ranging from faulty airbag deployment systems to flawed designs for ignition systems.

We have precedent for how we qualify and evaluate things for safety: test them across a variety of conditions, accumulate driver-miles or operator-hours and incident frequencies. Then, using that data establish a bar for what constitutes an acceptable level of risk given the utility something provides. If we wanted to ensure nobody ever died in a car accident, we would ensure there were no cars, but collectively we've made a different choice.