Most of the car world is obsessed with power and prestige. Which is why Toyota unceremoniously became both the largest and most profitable carmaker in the world, because they made the cars most people actually wanted to buy, reliable and practical.
While decimating the market share of traditional volume makers, luxury markets were largely left alone for a time. There is no doubt that BMW and Mercedes are absolutely terrified of Lexus.
You also have to understand the differences in labour costs as well. The big 3 german autos aren't making cars for the masses, that was never their intent. They were aimed at trying to make "the best cars" in the world. That's why the big 3 german autos seem to be copying each other all the time.
Toyato is the largest automaker but it's not that far ahead from Volkswagen, germany's common man's car maker.
You have to also remember the way japan conducts business through its keiretsu is very unique that gives them huge advantage over western markets.
Japanese cars are cost effective. That's the philosophy they've always been built around, cheap yet high quality. Germany's big 3 cars are built with comfort and performance in mind. When's the last time a non-euro car brand has won le mans or F1 (ok i know, eurocentrist racing)? American cars are built to have the biggest engine so it can go in a straight line really really fast, since most major highways in the US are just straight as fuck lol.
