The Japanese government rejected criticism on Friday that its 3.7 billion "cash for clunkers" program unfairly excluded U.S. Big Three automakers -- GM, Ford and Chrysler, the Detroit News reported.
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 do not require the same emissions testing.
"The short answer is Japan believes that our program is fair," Miura said. "We have our 'cash for clunkers' program, but this is not only about
stimulus but also for environmental policy."
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, GM, Ford and Chrysler 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 tax cut of 2,830 U.S. dollars 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 an incentive of 1,130 U.S. dollars 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.