agent Entrepreneur logo
MenuMENU
SearchSEARCH

Japan Rejects Detroit 3 Criticisms of 'Cash for Clunkers' Program

December 11, 2009
2 min to read


Washington - The Japanese government has rejected criticism that its $3.7 billion "cash for clunkers" program unfairly excludes Detroit's Big Three automakers, reported The Detroit News.

Satoshi Miura, a consular official in the Japanese Embassy in Washington who handles auto issues, said U.S. manufacturers could participate if they followed the same import rules as many others. Instead, U.S. companies opt to use a set of rules that doesn't require the same emissions testing.

Ad Loading...

"The short answer is Japan believes that our program is fair," Miura said today. "We have our 'cash for clunkers' program, but this is not only about stimulus but also for environmental policy.

"Any car can enjoy this program as long as they satisfy the same fuel efficiency standards, regardless if it is domestic or imported." Miura said 43 percent of imported vehicles qualify for the program in Japan.

In a letter to the deputy U.S. trade representative Thursday, General Motors Co., Ford Motor Co. and Chrysler Group LLC called the program "another example of Japan continuing efforts to discriminate against imported vehicles."

The program makes "the vast majority of imports ineligible for the program's significant tax cut benefit, regardless of the vehicle's fuel efficiency," the letter said.

Japan is providing up to a ¥250,000 ($2,830) tax cut for scrapping a car 13 years old or older toward the purchase of a new vehicle as long as it meets the 2010 fuel efficiency requirements and a ¥100,000 ($1,130) incentive for new vehicle purchasers who do not scrap a vehicle.

Ad Loading...

Under Japan's program, no U.S. vehicles are eligible because of special import rules; 87 percent of Japanese-built vehicles are eligible. But the Japanese government noted that program is voluntary, and U.S. manufacturers can qualify if they use the same import guidelines that other companies use.

Domestic automakers have long railed over what they call unfair hurdles to selling vehicles in Japan and have been trying to get more access to the market. It's unclear how much a favorable change would boost U.S. exports to Japan.


More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...