And they still value quality in production. Why ? If I knew I was going to get rid of a car in a few years I wouldn't pay a premium for Toyota quality.
A few reasons why I can think of offhand:
-work ethic: the way they think is "this has to be this way." (like this bolt has to be torqued to this amount). This is no "that's close enough" attitude, which becomes important in manufacturing/design.
-desire for quality/style/feel: Japanese like new stuff, plus they like quality stuff. Not just reliability, but it has to feel good, look good, etc. No jiggly plastic buttons. There's a huge emphasis on this plus ergonomics, etc. I once participated in a test there where they asked foreigners to judge the style, ease of use, feel of the buttons of car audio head units. They are also willing to pay more for quality (or perceived quality, as in German imports) even if they don't plan to keep the vehicle more than 5 yrs. Low priced goods are viewed with suspicion, as low price=low quality.
-competitive environment: the toughest car market for Japanese automakers is probably the domestic Japanese market. Japanese consumers are discriminating shoppers. Ditto for electronics. The domestic market is a test bed for new products. If they're a hit (e.g., cube-shaped cars), they are exported. I think Toyota makes over 80 JDM models.
-killer fines/taxes: if your car drips a single drop of oil, you're hosed! We're talking $$$$ in fines at the inspection, dealer has to do the work (not yourself, not Jiffy lube).
-culteral stigma: there is also a stigma or bias against "used" stuff (hence, they like "new"). For example, if someone dies and you give them money during the funeral, you always give used 10,000yen bills in a special envelope for funerals. If it's a wedding, you always give new 10,000 yen bills. The post office/bank will change your used 10,000 yen bills for brand new bills upon request. Also, the ATM machines will press used bills so they are nice and crisp.
-customer service is highly valued: if you go to a restaurant and had a great meal but the hostess/receptionist doesn't thank you profusely, that will immediately change their opinion of the place. The service we get at Lexus dealers here is the norm just about everywhere there, as the customer is always #1. That's one problem lexus has selling cars in Japan...pamepering their customers doesn't work like here, as they're used to it. Even the el cheapo dealership selling lower-end cars will pamper their customers.
Just remember that in the USA, price is #1, service/quality are secondary. In Japan, quality & service are #1, price is secondary.