I think the joke here is that when East Germany into communism, it already shows its famous efficiency by building good Volgas (basically the Soviet Union Car). Back then, those were items of luxury, and is the pride of the USSR. Of course, East Germany beat the Soviet in terms of that, and thus he gains admiration from the other Warsaw Pact/Soviet Puppet States, and the envy of the USSR. At least, that's what I think of it. I'm probably wrong again or something tbh.