End of eco-car subsidy program has industry expecting worst  

With subsidies for environment-friendly vehicles in Japan set to expire by the end of September, car dealerships and automakers alike are scrambling to tap the anticipated surge of last-minute buyers and devise ways to stimulate demand afterward. “Only 30 days until the end of eco-car subsidies,” reads a signboard at a Nissan Motor Co. affiliated dealership in central Tokyo. While normally a quiet time of year at the dealership, its salespeople are busy visiting prospective customers because applications for the subsidies can be filed only if vehicle registration is completed by the deadline. And time is running out for those looking to use the grants to buy popular models such as Toyota Motor Corp.’s Prius hybrid. To make it even more pressing, the program may end earlier than scheduled because the funding could run out before then. According to the Next Generation Vehicle Promotion Center, which has been processing applications for the program, 85% of the funds for eco-friendly passenger cars had been used up as of August12, leaving ¥86.1 billion (US$1 billion) available. With money flowing out at a pace of ¥2.42 billion (US$28.78 million) a day on average, the coffers could be empty well before September ends. (August 30, 2010)