To use this site, please disable the ad blocking feature and reload the page.
This website uses cookies to collect information about your visit for purposes such as showing you personalized ads and content, and analyzing our website traffic. By clicking “Accept all,” you will allow the use of these cookies.
Users accessing this site from EEA countries and UK are unable to view this site without your consent. We apologize for any inconvenience caused.
Yomiuri Shimbun file photo / Reuters Bigmotor logo, left, Logo of Itochu Corp
Jiji Press
12:37 JST, February 22, 2024
TOKYO, Feb. 21 (Jiji Press) — Major Japanese trading house Itochu Corp. has decided to support the rebuilding of troubled Japanese used car dealer Bigmotor Co., informed sources said Wednesday.
Itochu plans to acquire Bigmotor’s prime assets, such as its outlets and vehicle maintenance factories, jointly with others including an investment fund. Bigmotor’s founding family is seen staying away from its management.
In November last year, Itochu, subsidiary Itochu Enex Co. and investment fund J-Will Partners said that they would jointly conduct an exclusive evaluation of Bigmotor’s assets.
Through the evaluation, they are believed to have concluded that the rebuilding of Bigmotor would be feasible if the company separates its nonperforming assets and reforms its corporate structure.
The Itochu group engages in a wide range of automobile-related businesses, including tire sales and automobile insurance. It apparently hopes to create synergy effects by placing Bigmotor under its wing.
Bigmotor is facing a management crisis after a series of wrongdoings at the company were exposed, including inflating auto insurance claims by deliberately damaging customer vehicles.
The company has been slapped with administrative penalties, including the suspension of vehicle maintenance operations and the revocation of the designation of some outlets as private automobile inspection centers. It also lost its registration as a nonlife insurance agency.
