Toyota is a worldwide organization selling cars in nearly all countries from very rich to dirt poor. The strength of Japanese and Korean manufacturers is their incredibly wide range. Toyota also owns Daihatsu, which makes strange little cars with 800 cc engines but with lots of room inside. It is sold in many countries.
What you are saying is possibly true for the North American market, but the Yaris is a very popular family car in most of the world.
If you live overseas for a few years you will start to realize that the North American Market is unique and could not be duplicated elsewhere. In Japan in many cities you can only license a car if you have arranged to have a parking space for it first. So much for a Chevy Suburban which simply would not fit in.
A few years ago we spent 3 weeks in England and Scotland. We saw exactly 2 pickup truck, and one of them had a company logo on it and was a business truck.
In short, foreign manufacturers really could do without the North American market and still survive nicely.
Volkswagen was or is the world’s largest manufacturer and only has a small share of the US and Canadian market…