My understanding is that this is now going back and car manufacturers are reverting this decision.
So yeah, why not spend the saved money on advertising? I don’t know the complexity of such decisions. There are some manufacturers that do take a stand not to cut as many corners. Over time they can become known for their design. Apple (at least until the mid 2010s) I’d say was one such company.
By the way, as was pointed out, £700k seems negligible to companies that size for something that might potentially torpedo a car if enough people hate that part and refuse to buy it based on those grounds. But I’m not an expert.