Post by TonyV on Jan 27, 2010 0:54:55 GMT -5
Last Updated: January 26. 2010 6:02PM
Ford CEO praises Japan for opening 'clunkers' program to U.S.
David Shepardson / Detroit News Washington Bureau
Washington -- Ford Motor Co. President and CEO Alan Mullaly praised the decision by the Japanese government to open its "cash for clunkers" program to U.S. automakers.
"That's a positive step," Mulally said on the sidelines of the Washington Auto Show today.
He said other trade barriers, including the value of the Japanese yen, need to be addressed to level the playing field and enable American automakers to compete in foreign markets.
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But Ford still has problems with Japan's plan to open its program. Officials said because Japan is only going to use the city fuel economy ratings, only one Ford model was likely to qualify for the Japan program.
On Monday, Rep. John Dingell, D-Dearborn, sent letters to U.S. Trade Representative Ron Kirk and the Japanese ambassador to the United States, Ichiro Fujisaki, urging Japan to use the combined fuel economy rating that would let more Ford models qualify.
"This rating is the most balanced, fair and accurate measurement of a vehicle's fuel economy performance and therefore is the most appropriate criteria to use to assess eligibility for Japan's fleet modernization program," Dingell said.
Mulally told reporters that Japan needs to do more to open its markets.
"We're always pushing to let the markets decide what the currency exchange rates should be," Mulally said.
U.S. automakers have long argued that the Japanese government improperly intervenes to support the country's own automakers in the value of the yen. Japan has denied the charge.
Last week, Japan reversed course and agreed to allow U.S. manufacturers to participate in its $3.7 billion clunkers program following sharp criticism from Congress and the U.S. trade representative.
Mulally conceded that Ford would sell "a relatively small number of additional cars" as a result of the decision to open the market.
U.S. manufacturers could have participated previously had they followed the same import rules as other automakers.
Nearly half of the U.S. government's $3 billion clunkers program went toward buying Japanese cars and trucks. Japanese brands claimed 319,300 of the 677,000 vehicles sold during the month-long American program.
Japan is the world's No. 3 auto market, but U.S. automakers barely make a dent in it. Detroit's Big Three sold 8,707 vehicles in Japan in 2009, out of 178,500 total sold by foreign automakers, as total Japanese auto sales fell 9 percent to 4.6 million vehicles.
Mulally also said Ford isn't pursuing a second U.S. cash for clunkers program.
"Everything we can do to continue to improve the strength of the economic recovery -- that's the important thing we do," he said.
Mulally said January auto sales "are down a little bit" over December, but predicted they would be a little better than in January 2009.
But he reiterated Ford's belief that 2010 industry sales will fall between 11.5 million and 12.5 million vehicles.
Mulally also said it was unclear whether Ford would hire 1,200 new workers to build Explorers in Chicago, or if it will fill the jobs from workers at other plants.
"It's too soon to tell," he said.
Ford CEO praises Japan for opening 'clunkers' program to U.S.
David Shepardson / Detroit News Washington Bureau
Washington -- Ford Motor Co. President and CEO Alan Mullaly praised the decision by the Japanese government to open its "cash for clunkers" program to U.S. automakers.
"That's a positive step," Mulally said on the sidelines of the Washington Auto Show today.
He said other trade barriers, including the value of the Japanese yen, need to be addressed to level the playing field and enable American automakers to compete in foreign markets.
Advertisement
But Ford still has problems with Japan's plan to open its program. Officials said because Japan is only going to use the city fuel economy ratings, only one Ford model was likely to qualify for the Japan program.
On Monday, Rep. John Dingell, D-Dearborn, sent letters to U.S. Trade Representative Ron Kirk and the Japanese ambassador to the United States, Ichiro Fujisaki, urging Japan to use the combined fuel economy rating that would let more Ford models qualify.
"This rating is the most balanced, fair and accurate measurement of a vehicle's fuel economy performance and therefore is the most appropriate criteria to use to assess eligibility for Japan's fleet modernization program," Dingell said.
Mulally told reporters that Japan needs to do more to open its markets.
"We're always pushing to let the markets decide what the currency exchange rates should be," Mulally said.
U.S. automakers have long argued that the Japanese government improperly intervenes to support the country's own automakers in the value of the yen. Japan has denied the charge.
Last week, Japan reversed course and agreed to allow U.S. manufacturers to participate in its $3.7 billion clunkers program following sharp criticism from Congress and the U.S. trade representative.
Mulally conceded that Ford would sell "a relatively small number of additional cars" as a result of the decision to open the market.
U.S. manufacturers could have participated previously had they followed the same import rules as other automakers.
Nearly half of the U.S. government's $3 billion clunkers program went toward buying Japanese cars and trucks. Japanese brands claimed 319,300 of the 677,000 vehicles sold during the month-long American program.
Japan is the world's No. 3 auto market, but U.S. automakers barely make a dent in it. Detroit's Big Three sold 8,707 vehicles in Japan in 2009, out of 178,500 total sold by foreign automakers, as total Japanese auto sales fell 9 percent to 4.6 million vehicles.
Mulally also said Ford isn't pursuing a second U.S. cash for clunkers program.
"Everything we can do to continue to improve the strength of the economic recovery -- that's the important thing we do," he said.
Mulally said January auto sales "are down a little bit" over December, but predicted they would be a little better than in January 2009.
But he reiterated Ford's belief that 2010 industry sales will fall between 11.5 million and 12.5 million vehicles.
Mulally also said it was unclear whether Ford would hire 1,200 new workers to build Explorers in Chicago, or if it will fill the jobs from workers at other plants.
"It's too soon to tell," he said.