Japan opens cash-for-clunkers stimulus plan to U.S. brand vehicles

Japanese FlagJapan has recently included US brand vehicles in its cash-for-clunkers stimulus plan, a move that’s sure to delight the Detroit 3 for the boost in sales that’s likely to come. A change was enacted to the system, allowing small-volume U.S. imports to 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. With the revision, those vehicles will be allowed to use their EPA mileage ratings to qualify for Japan’s program, according to Japan’s Ministry of Economy, Trade and Industry. Continued after the jump!


The change in policy does help US carmakers but the triumph is actually more symbolic than economic. Only about 2,000 vehicles a year are imported by the Detroit 3 under the preferred-handling system and less than 40% of those have mileage exceeding Japan’s 2010 rating.

An official at Japan’s Transportation Ministry said that the government wants to expand the option in order to attain “an environmentally friendly society while stimulating the economy.” It’s expected that the amendments to the program in Japan would lead to a sales increase of about 700 cars. Qualifying models include the Ford Escape, Cadillac CTS and Chrysler Grand Voyager.

The Japan government’s exclusion of US brands from its incentive program sparked outrage in the US, especially since the sales of Japanese brands were boosted by the US clunker program. Japanese automakers last year were able to sell 319,342 vehicles under the US clunkers program, nearly half of the 677,000 vehicles purchased.

[via autonews - sub. required]

Tags: , ,

Leave a Reply


TopOfBlogs