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Japan changes auto program after US objects

Published 01/19/2010, 03:27 PM
Updated 01/19/2010, 03:30 PM

WASHINGTON, Jan 19 (Reuters) - Japan has changed its auto scrappage program to allow more imported cars to participate after the United States objected to the original terms, the Japanese government said on Tuesday.

Senator Debbie Stabenow, a Democrat from the hard-hit auto state of Michigan, welcomed the move, which came two days before a hearing in the House of Representatives on barriers U.S. automakers face in Japan and South Korea.

"After excluding our vehicles for months, Japan is finally doing what is fair by including American cars in its program. I am pleased that the government heeded my call," Stabenow said in a statement.

Japan, in a statement from its embassy in Washington, said cars imported under a "preferential handling procedure" established in 1986 for U.S. automakers would be able to participate in a Japanese program to subsidize purchases of more fuel-efficient vehicles.

U.S. automakers previously complained their cars would not qualify for the subsidy, even though the U.S. "cash for clunkers program" was open to all imported cars. (Reporting by Doug Palmer and John Crawley; Editing by John O'Callaghan)

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