And yet, car companies are still incentivized to make unsafe cars, at least in the US.

Bigger vehicles are more profitable, easier to advertise (for features and/or as a status symbol), suffer less emissions regulation. They also are more likely to kill pedestrians or occupants of other cars, and do significantly more damage to anything else they hit.

They aren't even that safe for the occupants, they are much more likely to turn over in an accident.