Japan produces quality products. That even the revered companies here in the states e.g Apple via Jobs had to emulate them ? so yeah it ain't all about quality. Currency games have a strong role to play.
Japan is very successful if you look at their trade statistics and their products are often held in high esteem in regards to quality.
But the currency obviously helps Germany. Still, there are a lot of niche products where companies with around 300 employees can call themselves global market leaders. It is not just cars, although it is the largest industry and there are quite a few manufacturers.
