It is supposed to evolve to do both. If management knows what the hell it wants, and the ISO program is written so that this plan will be implemented, then the commitment to constant improvement CAN lead to a situation which yields what management wants.
In too many cases, the company makes the same old shit, perhaps with better reproducibility (or not), but it is documented to be the same old shit, as you say.
These programs CAN work, but not with disinterested management at the helm.
Quality has to be seen as "the product"; the product is not another cheapo SUV or some other short term piece of crap.
People will buy quality, if it is not priced outside their reach. People will eventually rebel against buying undependable poor quality merchandise.
GM is in there somewhere, better than the Yugo, but not as trusted (whether deservedly or not) as some other products.
We buy disposable razors with the intent to use them and throw them away after a short time.... Most of us do not accept this when we are dealing with cars.
I have spoken to a lot of younger people who used to accept that you buy a new car, use it 3-4 years, and then trade for new before the problems start. That philosophy is beginning to change.