The proposed solution in this scenario, when the general manager is unwilling to abandon the product line, due to extensive sunk costs, or to reiterate the design phase would be to renegotiate contracts and allow the company's ethics reputation to suffer the consequences. Before starting the renegotiation process with suppliers, re-evaluate the profit margin used to determine target costs, reducing the company profit before renegotiations (it may be possible to recover the necessary cost savings of 5-10% and eliminate the need for further renegotiations). When to renegotiate, sit down with suppliers, capitalize on the relationships you have built with these suppliers with a face-to-face discussion, explain the situation in hopes of working towards a solution that will allow this product to thrive in the current market, providing both parties with a advantage mutually beneficial growth of production and profit. Understand the consequences of renouncing previously agreed contracts; renegotiating price multiple times will undermine your relationship with suppliers and may push them to reduce quality to reduce costs to meet price requests, and may also cause suppliers to lose trust in the way you do business, potentially inflating your price contracts in the future in anticipation of price reduction