After facing pressure from Congress and the U.S. automotive industry, Japan today opened its version of Cash for Clunkers to U.S. branded vehicles. The Japanese Embassy defended its program as nondiscriminatory but said that it agrees to allow Detroit’s Big Three to take part.
“More details regarding how to apply for the subsidy will be decided soon and available through the Web site of Next Generation Vehicle Promotion Center, dealers of imported cars,” the embassy said.
Japan is providing a tax break of up to $2,830 for scrapping a car that is at least 13 years old. The money is good for purchasing a new vehicle as long as it meets the 2010 fuel efficiency requirements. The country is also offering a $1,130 incentive for new vehicle buyers who do not scrap an old vehicle.
Japanese brands manage to grab 319,300 out of a total of 677,000 in sales in the $3 billion U.S. Cash for Clunkers program last year.
– By: Kap Shah
Source: Detroit News