WASHINGTON, D.C. – The Japanese government has altered its Cash for Clunkers program to include vehicles manufactured in the United States, after pressure from the U.S. Congress. Much like that of the United States, Japan’s version of the Cash for Clunkers program is intended to decrease greenhouse gas emissions while boosting sales of new vehicles. The government gives rebates to help vehicle owners replace older, less fuel-efficient cars with new, more fuel-efficient ones.
           
The Japanese Clunker program started in April 2009 and is scheduled to end in March of this year. However, it is likely to be extended by six months.
           
Members of the New Democrat Coalition, a congressional caucus that supports policies to expand economic growth, wrote a letter to Japan’s U.S. ambassador, Ichiro Fujisaki, urging Japan to include foreign imports. They pointed out that the “U.S. program developed and approved by the Congress specifically allowed all global automakers to have vehicles eligible for vehicle purchase incentives, including Japanese automakers. In fact, nearly half of the cars and trucks benefited by the U.S. program were Japanese imports.”
           
The letter went on to say, “We urge you to change your program to allow U.S. automakers to participate, just as Japanese-based automakers participated in the U.S. program. We also encourage you to identify and remedy any violations of Japan’s trade obligations under the World Trade Organization. Our nation’s open-market, free-trade policies and practices must have reciprocal application with our key global trading partners.”
           
The Automotive Service Association has posted a copy of the letter on its legislative Web site at www.TakingTheHill.com.