Virtual testing and constantly improving manufacturing techniques haven't reduced the need for product testing, but they have certainly made it more difficult. As Six Sigma and other design/manufacturing techniques reduce manufacturing issues, they also make it more difficult to find faults.
That's particularly true in the automotive field. Tighter emission control, which are making particularly major strides for diesels, challenge manufacturers to come up with techniques that measure small amounts of particulates. At the same time, the many processing improvements on production lines make other types of errors more difficult to find.
Failure to find problems before full production lines get into the field can lead to expensive recalls and cruel hits to a corporate image. That's keeping testing at the forefront of manufacturing requirements.