Quote:
Detroit automakers say Japan's 'cash for clunkers' excludes U.S. vehicles
David Shepardson / Detroit News Washington Bureau
Detroit's Big Three automakers urged the U.S. government Thursday to take action over what they labeled Japan's discriminatory "cash for clunkers" program.
In a letter to the deputy U.S. trade representative, 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 $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 $1,130 incentive for new vehicle purchasers who do not scrap a vehicle.
The U.S. government said it was raising the issue with its Japanese counterparts and agreed that changes must be made.
The Japanese auto market has long been one of the most closed in the world for U.S. automakers and other imports, which account for less than 5 percent of the nation's sales.
Under Japan's program, no U.S. vehicles are eligible because of special import rules; 87 percent of Japanese-built vehicles are eligible.
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.
Carol Guthrie, a spokeswoman for the U.S. trade representative, said the government was working to address the issue. "USTR is continuing to raise this issue with the Japanese government. Our position remains that changes are necessary to give U.S. vehicles greater opportunity to qualify under Japan's program," she said Thursday.
Nearly half of the U.S. government's $3 billion Car Allowance Rebate System (CARS) program came from sales of Japanese cars and trucks. Japanese brands grabbed 319,300 out of a total of 677,000 in sales in the month-long U.S. "cash for clunkers" program.
That's well above the 260,561 vehicles sold by U.S. automakers, whose vehicles also accounted for 85 percent of all trade-ins.
Toyota Motor Corp. was the No. 1 seller in the U.S. clunkers program with 19.5 percent.
"We urge the U.S. government to make clear that it cannot tolerate this outright discrimination, particularly at a time when it has provided substantial direct financial support for Japanese automakers in this market," said the letter from the Detroit Three's trade arm, the American Automotive Policy Council.
Some in Congress wanted to try to craft the U.S. program to favor U.S.-built vehicles, but that idea was scrapped because of fears it would violate international trade rules.
The Japan Automobile Manufacturers Association, or JAMA, declined to comment and the Japanese Embassy in Washington didn't return messages seeking comment.
In explaining the reason for implementing the roughly $3.7 billion program, JAMA said in a fact sheet that sales in Japan have fallen sharply this year.
Japanese vehicle sales fell by 5 percent in 2008 from 2007 and have dropped by 17.6 percent for the first eight months of 2009.
Japan’s ‘Clunkers’ Unfair to Imports, Ford, GM Say
Too bad US Senators & Congressman didn't Exclude Japanese cars in the Cash for Clunkers program.
Sorry, but it makes sense. If they want to increase their own economy, why would they include other countries cars? The point is for Japan to make money, not US companies. The same thing should've been done with the US's cash for clunkers. Make it only domestic cars eligible, that way it focuses sales and the country makes money. Half of our cash for clunkers purchases came from japan.
Exodus 259 wrote:Sorry, but it makes sense. If they want to increase their own economy, why would they include other countries cars? The point is for Japan to make money, not US companies. The same thing should've been done with the US's cash for clunkers. Make it only domestic cars eligible, that way it focuses sales and the country makes money. Half of our cash for clunkers purchases came from japan.
This ^
Bill Hahn Jr.
Hahn RaceCraft
World's Quickest and Fastest Street J-Bodies
Turbocharging GM FWD's since 1988
www.turbosystem.com
According to CARS.
1. Ford Focus
2. Honda Civic
3.Ford Escape
4.Ford F-150
5.Toyota Camry
6.Toyota Corolla
7.Honda CR-V
8.Chevrolet Silverado 1500
9. Honda Accord
10. Hyundai Elantra
According to NHTSA
1 Ford Focus
2 Toyota Corolla
3 Honda Civic
4 Toyota Prius
5 Toyota Camry
6 Ford Escape
7 Hyundai Elantra
8 Dodge Caliber
9 Honda Fit
10 Chevy Cobalt
Take note at the best sellers. Of those 20 cars, 3 are not made here. So that right there helped US assemblies here. The sad part is, it is the foreign makers bringing US jobs here (shoot, we build Renaults too), our US automobile factories are either closing or moved outside of the US. Hell, Kia now is made here.
Also we really can not impose Nationalism, since we are such proponents of the free-market. Unless the actual consumers dictate this. But the way how things are today, it is almost like a double edged sword.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Japan has puposely kept thier money devalued to help thier own industries. 20% is a pretty good edge and certainly an example of nationalism.
The import plants operating here, that I know of are still importing components in mass. The assembly job is only one of the seven that support it in the area.
It doen't really matter anyway. The Japanese youth are losing their desire for cars and our domestic product wouldn't sell anyway.
lol, great, so americans continue to buy foreign products and foreigners are intelligent enough to stay away from ours. lets all just continue to buy foreign while they buy nothing from us. that'll probly help our economy.
