Targets

My Company has asked me to come up with virtual zero target for the teams. The targets are like we should have 0 faults by end of the year and have to create a plan to reach the target. Its really surprising that we want to achieve zero defect software by end of the year. For me it looks a good vision, but will setting such stiff targets will motivate people to achieve. My feeling is that targets should be stiff but should be achievable. It should make people feel proud of achieving with some stretch, not like being idealistic, or setting never achieved targets.