Based on the success of the U.S. version, Japan started its own cash-for-clunkers program. But, there's one big, bad difference that might actually violate international trade laws. Cars made by U.S. automakers, like GM and Ford, are effectively excluded from the Japanese cash-for-clunkers program.
"It's outrageous that Japan denies that their 'cash for clunkers' program discriminates against American automakers. When we put together the CARS program, we followed international law and made it apply to all cars sold in the United States--not just American cars," said U.S. Sen. Debbie Stabenow (D-Michigan), author of the cash-for-clunkers bill. "The Japanese program intentionally excludes our U.S. automakers through unfair trade practices."
According to government records, half of the cars purchased through the U.S. cash-for-clunkers program (319,342 of 677,017) were Japanese-made.
In the Detroit Free Press, the American Automotive Policy Council, which includes Ford, General Motors and Chrysler, called the Japan's action "outright discrimination." However, the Free Press article goes on to call the U.S. automakers' issues "more about symbolism than sales," noting that U.S. cars are not popular in Japan, and few American-made vehicles meet Japan's tougher fuel economy standards.
"I urge the Japanese government to stop discriminating against American workers and manufacturers, and I urge our government to take action if they continue these discriminatory policies," concluded Sen. Stabenow.
Also See:
Cash for Clunkers Generated 700000 Car Sales
What Happened to Cash for Clunker Trade-ins?
Obama Sets Historic Fuel Efficiency and Emissions Standards
Comments
Aside from this I’ve always had a problem with Cash4Clunkers. To me it seems to go against simple supply and demand economics. How can we push all of these new cars into a market already saturated with used and repossessed vehicles (see http://www.repofinder.com)? Now new cars are worth even less, we have more Americans in debt, and eventually more repossessions.
Japan is not in any violation of any law,in fact it is in conpliance with the surrender agreement,not to collect american made metal,if you remember some of the bullets during WW2 still had the made in america stamped on it,if you recall prior to WW2 Japan was buying alot of American scrap metal and used it to make weapons and artillery for WW2,so befor mumbling in the dark,please preform a cranial extraction and remember what you teacher said what is history good for,well this is the reason we learn history in school.
Gee, U.S. Sen. Debbie Stabenow (D-Michigan), if you idiots had thought a moment before implementing the Cash for Clunkers, you would have put the same limitations on the trade ins as well … i.e., ‘You can only trade in under the Cash for Clunkers program for a car that comes from an American ‘run’ /owned company’ (not made in America…Lord knows you guys have let all the foreign car companies build here) Then people would have had to buy Fords, GMs and Chryslers …. oh, and then GM and Chrysler would have made some more $ to give back to the govt. to help pay off their loans, put some people to work, etc. , duh! If you were my senator, representing Mich. (Detroit?) …… I’d start a movement to have you impeached for not helping out your own constituents!
Our Trade Policies need to change! Time and time again we learn the same mistakes. Our Free Trade Policy needs to contain a clause that implements the following “any country that restrincts American imports for any reason will have the same import restrictions into the United States.”
Curt
Japan one way street. Japan won US lost as usual. How many US politicians got paid off for this one?
Joe Merriman
Belleville Illinois
I just dont understand our senator’s thinking!!! Lets go a step further, just because a foreign car company ASSEMBLES a car in the usa doesnt to me meet the criteria of made in America. There are thousands of jobs lost to engineering, tool making, testing, designers, clay modelers, carpenters, die makers, robotics and thousands more jobs that go into developing a car. Bring the real jobs back to america by limiting a percentage of foreign cars sold in the usa that dont meet all the job requirements. Simply placing the parts in a box to be assembled in the usa isnt good enough. Our wealth is leaving the shoreline daily in the millions. Wake UP the world needs us more than we need them.