U.S. Cars Now Allowed in Japan’s Cash for Clunkers Program

Japan has modified its scrappage scheme conditions in order to allow U.S. cars to enter the program properly, subsequent to the United States’ complaints, Reuters noted.

In a statement from Japan’s embassy in Washington, the country states that cars imported under a “preferential handling procedure" (PHP) introduced in 1986 for U.S. carmakers would be eligible for the Japanese program which subsidizes acquisitions of more fuel-efficient cars.

"I welcome the news ... that Japan is going to drop the complete exclusion of U.S. automobiles from their Cash for Clunkers program," Sander Levin, chairman of the House of Representatives Ways and Means trade subcommittee was quoted as saying by Reuters.

U.S. Trade Representative Ron Kirk told the aforementioned source that Japan had given the green light , but U.S. officials were still evaluating details of the announcement "to ensure it meets the concerns my office has been raising with Japan since last fall."

U.S. carmakers had also complained their products would not be eligible for the subsidy while the American “Cash for clunkers” program developed last year gave imported vehicles a fair chance.

According to Reuters, Japanese automakers took full advantage of that opportunity, as their cars represented almost 50% of the vehicles sold through this program.

In an interesting statement issued before the Japanese government decision, Toyota North America’s President Yoshi Inaba said that the company supports the introduction of American cars in the aforementioned scheme.