Big Motor Ordered to Pay ¥270,000 Over Faulty Luxury Car Sales, August 02

A Japanese court has ordered Big Motor to pay ¥270,000 in damages and provide free repairs for selling luxury vehicles that failed mandatory inspections. The ruling marks another legal consequence for the used car dealer, which was sold to Itochu in May 2024 after a major scandal eroded consumer trust. The court found Big Motor breached its contract by failing to ensure the vehicles met inspection standards.

What the court found

The court ruled that Big Motor sold high-end foreign cars without ensuring they would pass Japan’s mandatory vehicle inspection, known as shaken. The company later fitted mufflers at no cost to make the cars compliant, but the court deemed this a breach of contract. The judgment requires Big Motor to pay ¥270,000 in damages and compensation to the buyer.

Big Motor’s collapse and sale

Big Motor dominated Japan’s used car market, capturing 15% of sales and operating over 300 locations with 6,000 employees by 2023. In July 2023, scandals broke that destroyed consumer confidence. Sales plummeted to 10-20% of pre-scandal levels. On May 1, 2024, Itochu acquired Big Motor for ¥60 billion, spinning off most assets into a new company called WECARS Co. and renaming the remainder Balm Co. to handle liabilities.

Ongoing legal exposure

This ruling is one of multiple legal challenges Big Motor faces following its 2023 scandals. The company’s rebranding and sale to Itochu has not resolved all disputes with customers who purchased vehicles during the scandal period. Courts continue to adjudicate claims related to vehicle condition, inspection compliance, and sales practices that occurred before the ownership change.

Final Thoughts

The ¥270,000 judgment reinforces that Big Motor remains liable for pre-sale conduct despite its acquisition by Itochu. Buyers who purchased non-compliant vehicles have a legal path to recover damages, signaling ongoing risk for the dealership’s new owners.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.