Gaia Series 93: Big Motor's struggle to rebuild

CNA

a day ago

A scandal-plagued car dealer attempts a comeback with a new name, new leadership, and old reputations to shake.
In the spring warmth of Nagoya, where weeds now poke through the pavement outside what was once a bustling used car showroom, the past still clings to Big Motor. Once Japan's top used car sales company, the firm fell spectacularly from grace after revelations of misconduct that ranged from falsifying insurance claims to using herbicides to kill roadside trees. 'They dented cars brought in for repairs using golf balls and other tools,' the narrator recounts. 'All to inflate insurance claims.'
The scandal, which led to a police investigation and arrests, culminated in the resignation of then-president Hiroyuki Kaneshige and his son, Koichi, who had wielded immense internal power. A chilling management handbook handed to employees stated: 'Executives must be given whatever authority is needed, including control over life and death decisions of subordinates.'
At its peak, Big Motor boasted 250 dealerships and 600 billion yen (S$5.37 billion) in annual sales. Some fifth-year employees earned over 30 million yen annually, while second-year staff saw salaries of nearly 25 million. It was a ruthless, performance-driven environment. 'It was so unreasonable and chaotic that there's a lot to say,' recalls one former employee.
Sales plummeted by more than 80 per cent following the revelations, and trust evaporated. Out of 6,000 staff, one third quit. As financial losses mounted, major trading company Itochu Corporation stepped in, acquiring Big Motor for 40 billion yen. It was a risky move. 'If there weren't [a risk], everyone would do it,' said Masahiro Okafuji, Chairman of Itochu Corporation.
Rebranded as WECARS, the company now operates under a new philosophy. Shinjiro Tanaka, appointed as president by Itochu, began inspecting dealerships nationwide. He was surprised to find a legacy of numerical rankings of sales staff still displayed prominently—Sales Power 992, Purchase Power 496. 'This isn't a video game,' he remarked.
At the Kumagaya dealership in Saitama Prefecture, manager Tsukasa Iijima confesses, 'We still don't really know what's going to happen.' The showroom is deserted, and despite the new branding, the stigma remains. A customer, asked why they returned, said: 'Maybe things have actually improved. That's how it feels. They seem more proper now.'
But not everyone agrees. Ms A, a victim of the earlier misconduct, was told in 2022 that her Audi had to be scrapped and sold it for 10,000 yen. It was later resold for 180,000 yen. Worse, the replacement, a red kei car purchased for 1.3 million yen, was suspected to be flood-damaged. 'It smells… like rubbish. Or maybe musty dust,' she says bitterly. To her, WECARS is merely 'plating over the same metal.'
The organisational overhaul starting with a completely refreshed management team, includes increased transparency in repairs, photographic documentation, and inviting customers into the workshop. Insurance, once a key revenue stream, is now outsourced due to a revoked agency licence. 'For WECARS, not being able to sell insurance feels like losing one of our weapons,' admits one employee.
In the Utsunomiya dealership, salesperson Tomoyasu Suzuki reveals the human cost of reform. His annual income has dropped by about 3 million yen. 'It's become harder to reach 10 million yen,' he admits, 'but I still think WECARS is better. There's no pressure chasing me.'
Wataru Gouroku, head of corporate planning and a key architect of the Itochu-led rescue, stresses culture over individuals: 'Now, only those who support the new culture remain. Don't write us off. Come visit just once.'
He spearheads weekly remote meetings where employees report mistakes openly, something unthinkable in the Big Motor era. 'Back then, your voice didn't get through,' one staff member says. 'If you spoke up, you got crushed.'
Despite cautious optimism, public scepticism persists. 'It just feels like they're messing around again,' says Ms A. 'Whether it's Big Motor or WECARS, they are the same thing.'
Yet, in mid-March, a curious ritual returns. Employees at a dealership shout 'Yes!' together each morning. 'For me, those things were actually a good part of the old culture,' says Gouroku. 'Not rejecting everything. But rather keep anything that still serves the customers well.'
As used car sales crawl back to 50 per cent of pre-scandal levels, the road ahead remains arduous. 'Even though I'm trying so hard, I'm still not trusted?' asks a disillusioned employee. The answer, perhaps, lies not in a name change, but in the long, unglamorous process of earning back what was lost: trust.