Probably one of the best know examples of this was the Ford Pinto. Of course with no internet it took a while for non industry types and the media to see a pattern. Once Ford saw the problem there was a look at cost to fix vs coast to deal with court cases/payouts... guess which one they chose? The other thing driving their decision was Ford promised to deliver a car that was under 2000lbs and inder $2000.
Sig Sauer( Swiss company,German company and US company) are all seperate entities owned by the same holding company. While they do work closely together for legal,tax and other reasons they are on paper three seperate companies.
People are placed by L&O Holdings for the sole purpose of making money for the partners and share holders. The brand only has value to the holding company based on sales. If the Sig Sauer brand fails the holding company will buy another name, use that and simply transfer all the plants,tooling etc to the new name.
Back in 2019 executives where given suspended sentances and the company paid huge fines( not the executives) for illegally selling pistols to the Columbian government. Basically the pistols were produced by the German group which couldn't get and end user certificate for the sale to Columbia. So the pistols were sent to the US group that then forward them to Columbia. They only got caught 'cause someone blew the whiste on them.
Holding companies like this are the corparate equivelent of clearcutting a forest with no concern to replanting. Which is why they will never admit fault on their part. For them it's better to let it burn to the ground and have another part of the holding company buy the assests for pennies on the dollar.