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Toyota Moves to Block Republic Acquisition of Florida Dealerships

14 July 1997

Toyota Moves to Block Republic Acquisition of Florida Dealerships

    TORRANCE, Calif., July 14 -- Toyota Motor Sales (TMS),
U.S.A., Inc. today announced that it is taking action in Florida to block
Republic Industries, Inc. from acquiring Lexus of Tampa Bay and an affiliated
dealership Lexus of Clearwater, both owned by Gulf Management, Inc.
    In a complaint filed with the Florida Department of Highway Safety and
Motor Vehicles, TMS states that Republic has failed to comply with the
company's established franchise requirements and policies.  For these and
other reasons, TMS contends that Republic is not qualified to be the owner of
the Gulf Management Lexus dealerships under the provisions of Florida law.
    "We've repeatedly expressed our concern - publicly and directly to
Republic - that the rapid acquisition of a large number of dealerships by a
single enterprise could seriously harm our other dealers and customers, as
well as our business," said Yale Gieszl, TMS executive vice president.  "We've
tried to reason with Republic in good faith, only to have our concerns
ignored."
    "Since January 1997, Republic's been on an unprecedented dealership buying
spree, moving from no ownership to reportedly more than 120 separate new car
franchises," said Gieszl.
    "For us to simply sit back and watch a company with Republic's lack of
automotive experience and an untested business plan acquire one dealership
after the other makes absolutely no sense.  What does make sense is for
Republic to establish a measurable track record based on actual business
performance.  That's exactly what our multiple-dealer ownership policies are
designed to ensure - that success is earned the old fashioned way, not just
acquired."

SOURCE  Toyota Motor Sales, U.S.A., Inc.