Photo/Illutration A Bigmotor Co. dealership in Tokyo (Yuki Kubota)

Major used-car dealer Bigmotor Co. is suspected of systematically damaging automobiles and unnecessarily replacing parts when handling accident repairs and passing the inflated costs to insurance companies.

Nearly 30 percent of 382 employees surveyed admitted underhanded repair work, according to a report by an investigative panel of lawyers and other third-party experts.

Nearly 60 precent of those involved said they were following instructions from supervisors.

The report, released July 18, said workers would whack vehicles with a golf ball in a sock, scratch them with a screwdriver or intentionally break headlight covers to inflate insurance bills for automobiles involved in accidents.

The report called the practices “extremely malicious acts that could amount to criminal destruction of property.”

The activities took place at the company’s auto repair shops nationwide.

The report attributed the problem to the company's unreasonable profit goals and low compliance awareness.

Bigmotor demanded that its repair shops secure about 140,000 yen ($1,004) in profits on each vehicle from service fees and parts.

If a shop failed to meet that goal, the manager got a dressing-down by senior officials at meetings. Some managers were demoted without a clear reason.

“A twisted corporate culture was formed in which employees tried to accommodate the wishes of company management without being asked,” the report said.

On July 18 Bigmotor said it had identified “inappropriate acts” in 1,275, or 15.1 percent, of the 8,427 claims it filed with insurance companies since November. The 1,275 repair jobs were worth 49.95 million yen.

The company said it will reimburse insurance companies. It will also continue investigating what transpired. 

Moreover, Hiroyuki Kaneshige, the company’s president, will forgo one year’s salary. A vice president and other directors will return between 10 and 50 percent of their salaries for three months.

Otherwise, the company has been tight-lipped. It has held no news conferences even after the investigation committee compiled its report in late June.

Also on July 18, Tetsuo Saito, the transport minister, said the ministry will look into whether Bigmotor violated the Road Transport Vehicles Law. He was speaking prior to the company’s announcement.

Bigmotor, an unlisted company based in Tokyo’s Minato Ward, has more than 250 dealerships nationwide. It had 6,000 employees as of February 2021.

It is common for insurance companies to refer car owners to specific repair shops following an accident. The shop then submits its bill for an insurance payout.

(This article was compiled from reports by Yuki Kubota and Hiroaki Kimura.)

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