Itochu drives new wheels with launch of new firm
Itochu drives new wheels with launch of new firm | Insurance Business Asia
Insurance News
Itochu drives new wheels with launch of new firm
Firm to take over main operations of car dealership involved in insurance fraud scandal
Insurance News
By
Roxanne Libatique
Japanese trading company Itochu Corporation (Itochu) has partnered with its energy subsidiary, Itochu Enex Co Ltd (Itochu Enex), to establish Wecars Co (Wecars).
What to expect from Wecars
Wecars will assume control of Bigmotor’s key businesses, including its used car sales and repair services. The former executives of Bigmotor have been dismissed, and the company has been renamed Balm Co, shifting its focus towards reparations.
The ownership structure of Wecars includes stake held by Itochu and Itochu Enex, along with investment fund J-Will Partners (JWP).
“The aim is to contribute to creating the future of automobiles for each customer through connections that we build. Moreover, the aspiration is to help create a better future for used cars and a better world. These aspirations are reflected in the company name,” Itochu said in a statement.
Bigmotor insurance scandal
Last year, Bigmotor became involved in a scandal for overcharging repair fees by deliberately damaging customers’ vehicles and submitting fraudulent insurance claims.
In October 2023, reports from Tokio Marine & Nichido Fire, Sompo Japan, Mitsui Sumitomo, and Aioi Nissay Dowa unveiled potential fraud in over 30% of the 53,000 insurance claims submitted by Bigmotor. The suspected fraudulent claims were detected between late August and late September.
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