Nissan Files Federal Court Action Against Republic Industries

10 April 1998

    CARSON, Calif., April 9 -- Nissan Motor Corporation U.S.A.
(NMC) today filed an action against Republic Industries, Inc., in the U.S.
District Court, Central District of California, seeking to enforce its prior
agreement with Republic and its dealer policies, including its ownership
policy.
    During 1997, Republic's management stated they both understood and would
abide by Nissan's dealer ownership and other policies.  Based on Republic's
statements, Nissan approved numerous Republic acquisitions of Nissan and
Infiniti dealerships.  Subsequently, Republic stated it would not comply with
NMC's ownership policies, backing out of its prior agreement.
    The Federal court filing by the company follows Nissan's voluntary
withdrawal of administrative petitions filed in Florida involving Republic's
proposed acquisition of three dealerships there.  Nissan withdrew the cases
due to the administrative judge's recent decision to severely narrow the
issues in the case and to not follow the most recent judicial precedent
regarding the scope of the Florida transfer statutes.
    In its federal case, NMC will be able to fully litigate its prior
agreement with Republic which could not be done in Florida since
administrative judges there have no power to enforce contractual rights.  The
move to hear the case in Federal court will allow a more thorough examination
of all issues raised by Nissan's complaint.
    Nissan Motor Corporation U.S.A., which includes the Infiniti luxury
division, markets and distributes Nissan and Infiniti vehicles in the United
States.

SOURCE  Nissan Motor Corporation U.S.A