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Neither.... They all produce crap, and they all produce nice stuff. You have to look at each model, each drivetrain, their histories. It's more complex then X countyr makes good/bad cars. Also what is a "good car" fast? Reliable? Cheap?
Subarus are great but fuel mileage is a little crappy,
BMWs are great but expensive, expensive parts, at times "overly complex". Like an electronic diff, nice cool great enginering, but is it really needed? Or just something more complex to break, and expensive to fix?
American cars some good some crap, crappy resale on a lot.
Japanese, (tan/tan candy snoooze.....) Good resale, good or percieved quality, not always live to the hype on reliability.
i'd add: "what country really produces that car you like"....
considering i've owned Japanese branded cars built in the US; and domestic models built in Mexico and Canada. So unless one studies the vin # or knows the background of the particular model, many may not know where their car was actually built/assembled at... that grey area seems to grow and grow...
Define "nicest". If you mean "overall", define the weights assigned to each element of comparison.
If Country A produces the three "nicest" cars, but all the other cars that country produces are crap, does that qualify as "the country that produces the nicest cars"?
- Germany: makes some fairly nice high-performance cars like Porsches, BMW Ms, and AMG Mercedes, but they are overpriced for what they are and reliability sucks. VW is vastly overrated as their cars are bland-looking, expensive, and also not very reliable.
- Italy: makes some of the prettiest high-dollar supercars as well as a lot of mass-market stuff that's pretty uninteresting. Reliability is notoriously atrocious and always has been.
- Japan: the cars are pretty reliable but a little overpriced and godawful UGLY! Seriously, have you seen Toyota's lineup lately? Yeech! Honda's isn't much better. Subaru at least makes some pretty bland-looking inoffensive but terrible-sounding cars and Mazda does okay enough although sometimes their designers are out on vacation too.
- England: historically made pretty-looking cars, but also notoriously unreliable. Lucas Electric jokes ring a bell to you Jag fans? Too bad for England that all of their historical marques got sold and are no longer English.
- The Netherlands: I think you meant to write "Sweden" here instead. The Dutch are famous for their "dopey" coffee bars , not cars.
- USA: wins by default. Reliability on par with the Japanese (Chrysler doesn't count, it's now owned by Fiat) and most of the American cars are at least okay to look at, unlike most Japanese cars that make you want to barf when you see them. Less expensive than everybody else on the list, and American makers make some pretty potent performing cars too. The only thing American makers really don't have is a brand with the cachet that can command huge prices on the name alone, such as the Italian supercars or the high-end German sports cars. If that's really their only problem, it's one we all can certainly live with.
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Too bad for England that all of their historical marques got sold and are no longer English. 
