Big Motor
Big Motor was a Japanese used-car retailer whose nationwide dealership and vehicle-service business collapsed after a 2023 insurance-fraud scandal and was reorganized under new ownership.
Last updated August 25, 2026
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Overview
Big Motor was a Japanese automotive retailer specializing in used-car purchases, sales, leasing, repairs, inspections, and vehicle insurance. Founded in 1976 in Iwakuni, Yamaguchi Prefecture, by Hiroyuki Kaneshige as Kaneshige Auto Center, the company adopted the Big Motor name in 1980 and initially expanded through neighboring communities in Yamaguchi. Its first store outside the prefecture opened in Utazu, Kagawa, in 1998. The company went through a period of retrenchment between 1997 and 2011, reducing capital and dissolving subsidiaries. It then entered a much faster expansion phase from 2012 through 2022. During that decade, Big Motor expanded its store network, increased sales roughly eightfold, and became Japan's largest used-car dealer by market share, reportedly accounting for approximately 15% of the domestic market. It also moved its headquarters from Osaka to Tokyo's Roppongi Hills in 2015 and used television advertising featuring well-known Japanese actors to build a mass-market profile. By 2023, Big Motor operated more than 300 locations and employed approximately 6,000 people. Its integrated model connected vehicle purchasing and retailing with repair work, inspections, financing-related services, leasing, and insurance sales. This structure created multiple revenue opportunities around each customer and made the company an important distribution partner for insurers, particularly Sompo Japan. The business came under severe pressure in 2023 after investigations into allegations that employees had deliberately damaged vehicles and carried out unnecessary repairs in order to inflate insurance claims. A third-party investigation commissioned by insurers reported extensive misconduct, including alleged pressure on repair personnel to meet profit targets and a corporate culture in which employees feared demotion or other penalties. The controversy expanded to allegations that roadside trees and other vegetation near stores had been poisoned or removed to improve storefront visibility, as well as claims involving aggressive sales targets and abusive internal communications. The scandal led to the resignation of founder and president Hiroyuki Kaneshige, regulatory raids, the withdrawal of Big Motor's registration as an insurance agent, restrictions on repair operations, and a major loss of customer trust. Sales fell sharply, reportedly reaching only a fraction of pre-scandal levels, while the company sought a buyer and refinancing. On 17 November 2023, Big Motor agreed to a transaction with Itochu Corporation. The transaction closed on 1 May 2024 for ¥60 billion. Most operating assets were transferred into a new company, WECARS Co., while the residual entity was renamed Balm Co. to handle liabilities and outstanding loans. The Big Motor brand therefore ceased to operate as the principal customer-facing business, although claims and legal consequences continued after the reorganization.
History
Big Motor began in 1976 when Hiroyuki Kaneshige established Kaneshige Auto Center in Iwakuni, Yamaguchi Prefecture. The business adopted the Big Motor name in 1980 and expanded through Yamaguchi, opening stores in Shimonoseki in 1984, Hofu in 1985, and Kudamatsu in 1995. In 1998 it opened its first outlet outside Yamaguchi, in Utazu, Kagawa. The company later experienced a contraction from 1997 to 2011, during which it reduced capital and dissolved subsidiaries. From 2012 onward, however, Big Motor pursued rapid expansion. Between 2012 and 2022, reported sales increased approximately eightfold, and the company became Japan's largest used-car dealer. Its growth strategy relied on a large physical network and an integrated range of services: buying and selling used vehicles, leasing, repairs, inspections, and insurance. In 2015 the headquarters moved from Osaka's Joto ward to Roppongi Hills in Tokyo. Advertising campaigns featuring actors including Ryuta Sato, Masahiko Nishimura, and Nao Omori supported the company's national profile. By 2023 the business had more than 300 locations and about 6,000 employees. Its scale also made it a significant intermediary between consumers and Japanese insurers. In June 2022, a whistleblower raised concerns with three major insurers about allegedly fraudulent claims submitted by Big Motor. An internal investigation requested by the insurers and conducted by Big Motor in January 2023 concluded that the claims resulted from mistakes. Sompo Japan accepted that explanation and resumed dealings, while Mitsui Sumitomo and Tokio Marine Nichido commissioned their own external investigations. A third-party panel released its findings on 18 July 2023. The report alleged a systematic practice of damaging vehicles, replacing parts unnecessarily, and inflating repair claims. It surveyed 382 employees and reported that many respondents had either admitted to intentionally poor work or said supervisors had ordered it. The report also identified thousands of questionable claims, while later reporting placed the possible number of fraudulent claims over several years at approximately 65,000. Big Motor's earlier internal investigation was subsequently criticized as unreliable, with individual case findings allegedly altered at the direction of executives. The crisis widened beyond insurance claims. Investigators examined allegations that employees had poisoned or removed roadside trees and other plants because vegetation obstructed store signs or failed internal appearance standards. Police raided company headquarters and nine outlets in September 2023. Former vice president Koichi Kaneshige was later among former employees indicted in relation to alleged property damage. Leaked internal messages also exposed harsh management language and contributed to public criticism of the company's workplace culture. Earlier reporting had described financial penalties or pressure associated with insurance-sales targets, although the company said such penalties were voluntary rather than formal policy. The consequences were operational, regulatory, and financial. Hiroyuki Kaneshige resigned on 25 July 2023. The transport ministry investigated the company and later ordered repair suspensions at 34 locations. The Financial Services Agency raided Big Motor's offices in September and revoked its insurance-agent registration in November. Sales reportedly fell to roughly 10–20 percent of pre-scandal levels at their lowest point, and banks rejected a request to refinance ¥9 billion in debt in August 2023. The controversy also affected Sompo Japan, which had resumed business after relying on Big Motor's internal findings. Regulators investigated whether Sompo had overlooked warning signs to preserve the commercial relationship. The insurer had placed approximately 40 employees at Big Motor, and Big Motor reportedly prioritized Sompo products in its insurance sales. Sompo Japan's chief executive and president announced resignations in January 2024 after regulatory criticism. The episode encouraged broader scrutiny of Japanese vehicle retailers and insurers. Itochu agreed to acquire Big Motor's operating business in November 2023. The sale closed on 1 May 2024 for ¥60 billion. Most assets and operations were transferred to WECARS Co., led by a new management team, while the remaining company was renamed Balm Co. and retained responsibility for outstanding liabilities and loans. This restructuring ended Big Motor's role as the operating retail brand. Claims investigations and efforts to adjust allegedly fraudulent insurance cases continued after the reorganization.
- 2024
Operating business transferred to WECARS
[1]Itochu completed the acquisition, transferring most operating assets into WECARS and renaming the residual entity Balm Co.
- 2023
Insurance-fraud allegations become public
[1]A third-party investigation published in July alleged systematic vehicle damage and inflated insurance claims.
- 2022
Rapid expansion period reaches its peak
[1]After a decade of rapid growth, Big Motor was described as Japan's largest used-car dealership.
- 2015
Headquarters moves to Roppongi Hills
[1]The company relocated its headquarters from Osaka to Tokyo's Roppongi Hills district.
- 1998
First dealership outside Yamaguchi
[1]Big Motor opened a dealership in Utazu, Kagawa Prefecture.
- 1980
Business adopts the Big Motor name
[1]Kaneshige Auto Center was renamed Big Motor as the company began expanding its dealership presence.
- 1976
Company founded as Kaneshige Auto Center
[1]Hiroyuki Kaneshige founded the business in Iwakuni, Yamaguchi Prefecture.
Products and positioning
A large, nationwide Japanese used-car retailer positioned around one-stop vehicle ownership services, broad inventory, trade-ins, repairs, inspections, and related insurance products. Before its collapse, Big Motor emphasized scale and claimed leadership in the number of vehicles purchased.
Automotive retail · 1976
Used-car retailing
Big Motor's core business was the purchase and sale of used passenger vehicles through a large national dealership network. The company promoted scale, broad inventory, and trade-in services, positioning its outlets as convenient destinations for consumers buying or disposing of vehicles.
Automotive services
Vehicle repair and bodywork
The retailer operated repair facilities and offered maintenance and bodywork alongside vehicle sales. This service line became central to the 2023 scandal because investigators alleged that some repairs were unnecessary or that vehicles were deliberately damaged to increase insurance claims.
Automotive services
Vehicle inspections
Big Motor provided vehicle inspection services as part of its one-stop ownership model. The offering connected customers' purchase, maintenance, repair, and compliance needs within the same dealership network.
Insurance distribution
Automobile insurance
The company sold automobile insurance products through its dealerships, creating an additional revenue stream around vehicle transactions. The Financial Services Agency revoked Big Motor's insurance-agent registration in 2023 after the fraud controversy.
Automotive finance and mobility
Vehicle leasing
Leasing was one of the vehicle-related services offered by Big Motor, complementing its retail and trade-in operations. Specific product names and contract terms are not established in the supplied sources.
Controversies
2023
Systematic insurance-fraud allegations
A third-party panel alleged that Big Motor employees deliberately damaged vehicles, replaced parts unnecessarily, and inflated insurance claims. The report described pressure to meet repair-profit targets and identified a substantial number of questionable claims.
2023
Alleged destruction of roadside vegetation
Police and local authorities investigated claims that trees and other plants near Big Motor outlets had been poisoned, cut down, or removed to improve storefront visibility or satisfy internal appearance requirements.
2023
Abusive corporate culture and aggressive targets
Leaked messages and earlier reporting portrayed a harsh management environment, including insults, threats, and pressure connected to repair profitability and insurance-sales targets.
2023
Sompo Japan relationship scrutinized
Regulators examined whether Sompo Japan knowingly relied on an inadequate Big Motor internal investigation and maintained the relationship to protect its business. The inquiry also considered Sompo's staffing and insurance-sales arrangements with the retailer.
Marketing campaigns
- National television celebrity advertising
Japan
Big Motor used mass-market television advertising and celebrity appearances to promote its nationwide used-car and automotive-service network. Actors associated with its commercials included Ryuta Sato, Masahiko Nishimura, and Nao Omori.
Outcome. The campaign supported national brand awareness before the company's 2023 reputational collapse.
Brand decisions
2024
Itochu completes acquisition and reorganizationM&ABackground
Big Motor's operating business had been damaged by the scandal and required new ownership and governance.
Action taken
Itochu completed the sale on 1 May 2024 for ¥60 billion, placing most operating assets in WECARS and leaving Balm Co. responsible for liabilities.
Aftermath
The Big Motor brand ceased to be the principal operating retail brand. New leadership was appointed, including Shinjiro Tanaka as CEO and Akiko Ito as a director.
Acquisition price. ¥60 billion (1 May 2024)
2023
Founder resigns after publication of investigationOtherBackground
The July 2023 investigation alleged widespread insurance-related misconduct and exposed weaknesses in Big Motor's governance.
Action taken
Hiroyuki Kaneshige resigned as president on 25 July 2023.
Aftermath
The resignation did not stop regulatory action, customer distrust, or the eventual sale and reorganization of the business.
2023
Company seeks a buyer after sales collapseStrategyBackground
Scandal-related sanctions and reputational damage caused sales to fall sharply and complicated the company's ability to refinance debt.
Action taken
Big Motor entered an agreement with Itochu Corporation on 17 November 2023.
Aftermath
The transaction led to the transfer of most operating assets into WECARS and the renaming of the residual company as Balm Co.
Debt refinancing request. ¥9 billion requested → Request rejected (August 2023)
Recent events
- 2024
Big Motor operating assets transferred to WECARS[1]
M&A · Leadership change
The Itochu transaction closed on 1 May 2024. Most operating assets were placed in WECARS, while the remaining Big Motor entity was renamed Balm Co. to manage liabilities.
Sources1 sources
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