Absence of U.S. Cars from Japanese 'Clunker' Program Irks Lawmaker

Washington DC January 7, 2010; The AIADA newsletter reported that when U.S. Rep. Betty Sutton (D-Ohio) proposed the "Cash for Clunkers" program to bolster the U.S. auto industry last year, the attempted exclusion of international nameplates soon aroused complaints from overseas automakers and free-trade advocates, and she relented.

According to the Washington Post, now the trouble is, as Sutton sees it, that the Japanese government has not returned the favor. Under that country's own incentive program, no U.S. nameplate is eligible.

But the rules for the Japanese incentive program are complex, and Japanese officials argue that it is open to imports but that American automakers have opted not to apply. "We think our program is fair and nondiscriminatory," said Satoshi Miura, an official at the Japanese Embassy in Washington. U.S. automakers typically bring cars into Japan under a program known as "Preferred Handling Procedure," which is cheaper than other importation methods but makes those cars ineligible under the Japanese incentive program, Miura said.

But Korean and European automakers have taken the necessary steps to become eligible. "Toyota has no objection to inclusion of any foreign auto manufacturer in the Japanese program," Ed Lewis, a Toyota spokesman, told the Washington Post. "We understand the U.S. government and the government of Japan are working on this issue and trust that they will work cooperatively toward a solution."

Click here for more on lawmakers' issues with the Japanese Cash for Clunkers program.