This could have gone very differently. Once again, ancient Hebrew law comes through:
"If a bull gores a man or woman to death, the bull is to be stoned to death... But the owner of the bull will not be held responsible. If, however, the bull has had the habit of goring and the owner has been warned but has not kept it penned up and it kills a man or woman, the bull is to be stoned and its owner also is to be put to death"
This is pretty directly applicable. Cars are dangerous. If car makers fail to improve their safety, they're liable to being sued by consumers. Seatbelts fit the bill, as do airbags. In a free market, it's in the interest of the manufacturers to take care of their customers. Customers can be as dumb as they want.
I guess my question though, is why didn't it work out this way?