...there must be a reason if other parts of the world, including mighty industrial countries like Germany and Japan, never managed to challenge England and Italy in such areas
Yes, there is a reason - lack of interest (in feeding in essence foreign usury type of organization), rather than lack of "special" knowledge that is alledgedly available only in a sacred land.
To suggest that Germany is lacking technological know-how, should they decide to apply themselved to that subject matter, is really soaked with rather monumental lack of perspective about German industry, ignoring racing arenas where German teams got involved, and performed very well.
This is just another case similar to the post-war Marshall Plan fund, when Germany was focusing and spending money on useful activities in life, whereas islanders spend and wasted time and money on empty posturing and self-promotion on global scale. Statements on these pages such as "we (English) producing special tolerances" are really great entertainment. What the heck you guys are thinking that other industrial countries do?
With respect of Mercedes employee demographics, it is very much an international organization with nationalities from around the world (including some Germans, BTW). The truth to be said, a sizable chunk of German population deep in their hearts stop considering in recent times Daimler Benz as a "German company" in pure sense of nation's pride.
Last remark regarding Toyota's F1 adventure while located in Germany. Well, that team was run unfortunately by British managers, many of them even could not speak Japanese or German, did not understand how their force thinks and works, and as in most cases in such situations, it did not end up well. I am aware of late involvement from Japanese side, but that came when already was too late and project was beyond salvation, so, they pulled out. If my memory serves me, there was the other company - you know, located right in the blessed valley - and they too left in shame under quite extraordinary circumstances, suffering heavy financial losses, while comprehensively mismanaged. So, please, do not tell me how inept Germans are. There is plenty at home to be concerned about. There is a story to be uncovered behind all those cases, and nothing is black and while in terms "we are cleaver, and they are stupid".