Japan's Ministry of Economy, Trade and Industry declared its "Cash for Clunkers" program will be "non-discriminatory." After previously excluding fuel efficient imported vehicles, citing the fact that their mileage ratings were not certified by the Japanese government under a program intended to make it easier to import vehicles, the agency now says: "In fact, about 43% of the imported vehicles are currently qualified for this program,".
The Japanese auto market remains almost completely protected. Imports — not just from the U.S., but from all other nations producing cars — imports account for just 5% of overall sales. South Korean automaker Hyundai plans to leave the Japanese market after selling just 764 cars from January to October of 2009.
"Japan still remains the most closed automotive market in the world," says Charles Uthus, spokesman for the American Automotive Policy Council. "We hope Japan's willingness to address this issue is a sign of future cooperation to remove additional non-tariff barriers, including currency manipulation."
Congress has held hearings on the matter, which pressured the Japanese government and to open the program to U.S. makers, threatening to sue the country under World Trade Organization rules. Japanese automakers made large sales gains in the U.S. cash for clunkers program, selling about half of the 677,000 vehicles purchased through the rebate offer, which gave consumers from $3550 to $4,500 for purchasing a fuel-efficient vehicle.
However, the Japanese policy change is largely symbolic. General Motors, Ford and Chrysler export only a small number (roughly 2000) vehicles a year to Japan.
Models such as the Chrysler Town & Country and Cadillac CTS sedan will qualify, two "best-in-segment" vehicles that belie the typical US media bias of "Presumably, if Detroit had any models that could really compete..." (as expressed on the popular "Truth About Cars" website).
