Japanese trading house Itochu Corp. said Friday it is considering investing in Bigmotor Co. in a bid to help reconstruct the used car dealership mired in an insurance fraud scandal.

Itochu, together with its subsidiary Itochu Enex Co. and investment fund J-Will Partners, won exclusive negotiation rights and will launch due diligence. They plan to make a final decision by next spring, it said.

The potential investment is based on the premise that the founding family of Bigmotor will no longer be involved in the management of the company, Itochu said.

Bigmotor is facing sponsorship challenges amid a significant decline in sales. The downturn follows revelations that the company charged excessive repair fees by intentionally damaging customers' cars, including scratching the bodies of vehicles with screwdrivers and hitting them with socks filled with golf balls.

Hiroyuki Kaneshige, its founder and president, stepped down in July amid mounting criticism.

Another used car dealer, Idom Inc., gave up on a plan to sponsor the troubled rival earlier this month, sources familiar with the matter said.

==Kyodo

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