Japan opens cash for clunkers to U.S. brands

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Japan opens cash for clunkers to U.S. brands

Posted on Tuesday, January 19th, 2010 at 12:15 PM EST.(Employee News)

Japan has opened the country’s cash-for-clunkers stimulus plan to U.S. brand vehicles, bowing to American pressure in a move that could boost Detroit 3 sales there, the Automotive News reported.

Small-volume U.S. imports now can qualify for the program if the vehicles meet Japan’s 2010 emissions standards, the trade paper said. 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, the Automotive News said.

Under a change to the system enacted today, those cars will be allowed to use their EPA mileage ratings to qualify for Japan’s program, Japan’s Ministry of Economy, Trade and Industry said in a statement, the paper reported. While the policy change helps U.S. carmakers, the victory is more symbolic than economic; the Detroit Three import only about 2,000 vehicles a year under the preferred-handling system, the paper said. And less than 40 percent of those are thought to have mileage exceeding Japan’s 2010 rating, an official at Japan’s Transportation Ministry said, the story said. (Automotive News)

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Chrysler Grand Voyager okayed for Japanese incentives
January 19th, 2010

The Chrysler Grand Voyager minivan is one of the American vehicles that will now qualify for rebates under Japan’s “Cash for Clunkers” program.

Bowing to pressure from the U.S. government, Japan has opened its stimulus plan to U.S. brand vehicles and will allow small-volume American vehicles if they can meet Japanese emissions standards. Previously, American vehicles had been excluded because they are imported under a special preferred-handling program that exempts them from complying with the Japanese standards. Under the new rules, the American vehicles will be able to use their EPA ratings to qualify.

While welcome, the changes are more symbolic than anything: just about 2,000 American vehicles are sent to Japan each year under the preferred-handling system and it’s anticipated that number will grow by somewhere around 700 with the incentives.

LINK:Chrysler Grand Voyager okayed for Japanese incentives | Allpar Chrysler, Dodge, and Jeep News