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Japan Limits Participation of U.S.-Made Vehicles in Cash for Clunkers Program
February 16, 2010
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By aftermarketNews staff
From AAIA Capital Report

WASHINGTON, D.C. -- Just days after the Japanese government relented to U.S. pressure to permit American nameplate vehicles to qualify for the country's Cash for Clunkers program, the U.S. Trade Representative (USTR) issued a statement Feb. 3 taking issue with the limited number of U.S. cars that will actually be able to participate. The USTR comments responded to a list released by the Japanese government of a very limited number of U.S. nameplate cars that would be “Eco-car” eligible based on a decision by Japan's Ministry of Economy, Trade and Industry to use city mileage ratings for the U.S. cars instead of the combined city/highway rating as the basis for determining eligibility. 

Congress also weighed in with their disappointment with the Japanese decision as House Ways and Means Committee chairman Charles Rangel (D-N.Y.) and Trade Subcommittee chairman Sander Levin (D-Mich.) called on USTR to continue to press the Japanese government to base eligibility on combined rate for U.S vehicles, which they said would be the "fairest" measure for fuel economy performance.