Japan's transport ministry on Friday launched a measure to hold hearings for Bigmotor ahead of implementing administrative penalties for 34 outlets of the used car dealer over fraudulent auto insurance claims.
The aim of the sessions will be to hear what the firm has to say about the alleged fraud. The ministry has already notified Bigmotor of the proposed administrative penalties, which include operational suspensions for auto repair plants.
Eight regional transport bureaus across the country planned to hold individual hearings for the Bigmotor outlets on Friday, but Bigmotor representatives did not show up. The company is not required to attend such hearings, and there are no penalties for absence.
A Bigmotor official said that the company had told the transport bureaus that it would be absent from the hearings, adding that the company will accept the proposed punishments and work to regain trust and implement measures to prevent misconduct from recurring.
In July, the ministry conducted unannounced on-site inspections at the 34 Bigmotor outlets in 24 prefectures. Violations, including overcharging customers for inspection and maintenance fees, were confirmed at all outlets.
Under the proposal, the 34 outlets will be ordered to suspend their maintenance operations for a certain period, with 12 of them found to have adopted especially malicious practices given the severest punishment, which involves revoking their designation as private vehicle inspection stations.