- General News
Japan’s Bigmotor to Consider Selling Itself as Option
12:56 JST, September 15, 2023
Tokyo (Jiji Press)—Scandal-tainted Japanese used car dealer Bigmotor Co. will consider drastic business restructuring options, including selling the company, it was learned Thursday.
In the second round of talks with creditor banks, Bigmotor said that it will pick a sponsor to oversee its reconstruction, asking them not to terminate transactions.
The creditors are three megabank lenders including Sumitomo Mitsui Banking Corp. They were also informed of Bigmotor’s business situation, marked by slumping sales following the revelation of car insurance fraud.
Bigmotor is drawing up a rehabilitation plan with Deloitte Tohmatsu Group.
Its business environment, however, remains severe.
Consumer finance company Jaccs Co. has entirely stopped concluding automobile loan contracts through Bigmotor outlets. Used car information site Carsensor has stopped putting up information on used vehicles sold by Bigmotor.
In addition, major nonlife insurers have announced the cancellation of insurance agency contracts with Bigmotor and the suspension of referral of accident-hit vehicles to Bigmotor garages.
Bigmotor has decided to close five of its stores to secure cash.
In the first round of talks with the creditors in August, the banks refused the car dealer’s request to refinance the 9-billion-yen debt falling due soon. Bigmotor later paid back the amount.
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