TOKYO (Kyodo) — Bigmotor Co. President Hiroyuki Kaneshige said Tuesday he will step down, with the used car dealership chain having come under fire over allegations that the company charged excessive repair fees by intentionally damaging cars and also made fraudulent insurance claims.
The decision came as Japan’s transport ministry is expected to conduct hearings over the matter on Wednesday amid rising public outrage over the company’s practices.
“We’ve caused so much trouble and concern to customers and nonlife insurance companies. I am truly sorry,” Kaneshige, 71, also the company’s founder, said at a press conference. He will resign on Wednesday.
The company said it uncovered at least 1,275 cases of inappropriate repairs that were carried out. Its employees were scratching the bodies of vehicles with screwdrivers and damaging their surfaces with golf balls, according to a report compiled by outside lawyers.
“Renewing the company’s culture is the fastest way to regain trust” from customers caused trouble by Bigmotor, Kaneshige said of his resignation.
Shinji Izumi, a 54-year-old executive, will succeed Kaneshige, the company said.