Sutton and Fisher Blast Exclusion of U.S. Cars in Japanese Cash For Clunkers Program

When U.S. Rep. Betty Sutton (D-Ohio) proposed the "Cash for Clunkers" program to bolster the U.S. auto industry last year, she limited the government purchase incentives to cars produced in North America <http://green.autoblog.com/2009/03/18/cars-act-revives-cash-for-clunkers-scrapping-plan-in-u-s/> .

But the exclusion soon aroused complaints from overseas automakers and free-trade advocates, and she relented. The $3 billion U.S. program ran over the summer and was open to all fuel-efficient cars, no matter where they were made.

Now the trouble is, as Sutton sees it, that the Japanese government has not returned the favor. Under that country's own incentive program, not a single car from the Detroit Three is eligible.

"It's outrageous," Sutton said Wednesday. "They specifically designed it to exclude the participation of U.S. auto imports."

In recent weeks, the Japanese clunkers program, which may soon be extended, has become the focus of growing complaints from U.S. automakers and other interests.

Ohio Lt. Governor and US Senate Candidate Lee Fisher sent out a press release stating:

“The exclusion of American autos from Japan’s domestic Cash for Clunkers program is outrageous and the Japanese should take immediate steps to make U.S. cars eligible. Nearly 300,000 Japanese cars were sold under the U.S. Cash for Clunkers effort spearheaded by Congresswoman Betty Sutton last Fall. The program provided an important boost to sales and manufacturing for both U.S. and Japanese automakers and has helped stabilize the automotive sector.

"And yet, when Japan created its own sales incentive program, it erected barriers making it nearly impossible for American cars to qualify.  Japan is an important trading partner of the U.S., but we cannot stand by as our manufacturers are discriminated against in foreign markets. I fully support taking a case to the World Trade Organization to compel Japan to open up its market to American cars and trucks. Trade remains vital to Ohio’s economy, but workers on Ohio assembly lines-- from the Jeep plant in Toledo to the GM factory in Lordstown--should have the same opportunity to sell their cars in Tokyo as they do in Cincinnati.”

Nearly half of the U.S. government's $3 billion clunkers program went toward buying Japanese cars and trucks, accounting for about 319,000 out of a total of 677,000 vehicles sold under the program. But according to Miura, about 80 percent of the Japanese branded cars in the program were vehicles built in North America.

The biggest winner in the United States was Toyota.

On Tuesday, Sutton filed a resolution calling for the U.S. trade officials to initiate a trade case against Japan if its program continues to exclude U.S. brands.

A spokeswoman for the U.S. trade representative said that the office "continues to raise this issue with the Japanese government, including at a senior level." The spokeswoman, Nefeterius A. McPherson, added that "in light of serious U.S. concerns, both sides have agreed to continue to consult. We hope to find a way forward through these discussions."