Japan Body Quizzes Scandal-Hit Bigmotor

Japan's Fair Trade Commission has launched an inquiry into Bigmotor Co.'s business practices as the scandal-hit used car dealership and repair chain is suspected of infringing on the profits of subcontractors, sources familiar with the matter told Mainichi Japan.

Bigmotor, embroiled in a scandal over excessive repair fees and auto insurance fraud, may have pressured its subcontractors to slash prices and have their company vehicles undergo periodic inspections at its workshops, according to the sources. I Photo: Bigmotor

Bigmotor, embroiled in a scandal over excessive repair fees and auto insurance fraud, may have pressured its subcontractors to slash prices and have their company vehicles undergo periodic inspections at its workshops, according to the sources.

The fair trade watchdog could issue an advisory if a violation of the subcontract law is confirmed.

The law stipulates fair business transactions between prime contractors and subcontractors.

The transport ministry in late July conducted on-site inspections at Bigmotor dealerships across the country amid allegations that the Tokyo-based company charged excessive fees after intentionally damaging vehicles and made fraudulent insurance claims.

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