Definitely apocryphal, I heard the same story told from a local car manufacturer's perspective (in Austria, so other country and other industry). But it seems back then Japan really made a name for itself w.r.t. quality control. There are more such stories like this going around, like: "Can your process work with such small drills?". The answer: They send back the drill. Drilled.

Except for stories about total engineering fail or borderline fraud, nowadays I couldn't imagine any stories being told about about manufacturing in Germany, US or China.