One word: branding.
The wife would like a Louis Vuitton handbag. It is made of leather the same as other handbags but it costs a truckload for the same product that can be had at a small fraction of the price. Why? Branding. One isn't buying just a handbag, one is buying the label.
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Takumi788 mentioned BMW. What's the image associated with BMW. I think it is German engineering, German quality which is kind of ironic given that yes, BMW AG is based in Germany but has manufacturing or assembly plants in Brazil, China, Egypt, India, Indonesia, Kaliningrad, Mexico, South Africa, USA.
They have design studios in UK,USA,China,Germany.
So when some punter buys their "German" car they don't know that it could have spent its entire life, from design to production, without touching German soil.