Japan opens cash for clunkers to U.S. brands
Japan has opened the country’s cash-for-clunkers stimulus plan to U.S. brand vehicles, bowing to American pressure in a move that could boost Detroit 3 sales here.
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Source: Japan opens cash for clunkers to U.S. brands
Quote from the article:
| Small-volume U.S. imports now can qualify for the program if the vehicles meet Japan’s 2010 emissions standards. The cars had been excluded because they are imported under a preferred-handling process that doesn’t test for compliance with Japanese fuel economy standards. Under a change to the system enacted today, those cars will be allowed to use their EPA mileage ratings to qualify for Japan’s program, Japan’s Ministry of Economy, Trade and Industry said in a statement. While the policy change helps U.S. carmakers, the victory is more symbolic than economic. The Detroit 3 import only about 2,000 vehicles a year under the preferred-handling system. And less than 40 percent of those are thought to have mileage exceeding Japan’s 2010 rating, an official at Japan’s Transportation Ministry said. “The government would like to expand the option for achieving an environmentally friendly society while stimulating the economy,” he said. The change in the Japanese program amounts to a sales boost of roughly 700 cars, he estimated. Models now qualifying include the Ford Escape, Cadillac CTS and Chrysler Grand Voyager, he said. The exclusion of U.S. brands from Japan’s incentive program sparked outrage in the United States, where Japanese automakers were big winners in that country’s clunker program. Japanese automakers sold 319,342 vehicles under the U.S. clunkers program last year, almost half of the roughly 677,000 vehicles purchased. |
Source: Japan opens cash for clunkers to U.S. brands
