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Republic Industries Says Toyota Claim Is 'Patently False'

14 July 1997

Republic Industries Says Toyota Claim Is 'Patently False'

    FORT  LAUDERDALE, Fla., July 14 -- Republic Industries, Inc.
called a lawsuit filed by Toyota contesting Republic's acquisition
of two Florida Lexus dealerships, "frivolous and patently false," and vowed to
vigorously contest Toyota's attempt to block the rights of Republic and
individual business owners to engage in free market selling practices.
    Under Florida state franchise law, a manufacturer can only contest a
transfer of a franchise if the new owner lacks good moral character or
sufficient business experience -- standards that Republic easily meets.  In
fact, Republic has already entered into global agreements with other
manufacturers, who have embraced the partnership as a means of growing sales,
enhancing brand image, and benefiting consumers.
    "Toyota is unfairly and illegally attempting to interfere with every
business owners' fundamental right to sell his or her enterprise," said Jim
Cole, Senior Vice President and General Counsel of Republic.  "We have
negotiated with Toyota in good faith, but Toyota is seeking to abuse our
judicial system and distort Republic's intentions.  Toyota is trying to return
to the days before each state passed dealer protection laws.  They would
require Republic to give up its legal rights for an extremely small percentage
of Toyota's retail distribution.  Republic has remained silent on these issues
for too long, and it's time we let consumers, dealers, legislators, attorneys
general, and the Federal government, including the Department of Commerce,
know that Toyota is interfering with the free market system that we all
value."
    Republic has been acquiring premier new car dealerships across the country
in an effort to improve the overall buying and selection process for
consumers.  At the same time, Republic has built the most solid and
experienced management team in automotive retailing.  According to Republic,
Toyota has repeatedly attempted to delay Republic's acquisitions by filing
unsupportable legal claims.
    Republic Industries, Inc. is a diversified holding company with
subsidiaries operating in the automotive retailing, automotive rental,
automotive financial services, solid waste services, and electronic security
services industries.  The company owns the nation's largest chain of new
vehicle dealerships and is building a chain of used car megastores which it
operates under the AutoNation USA brand name.  Republic also owns National Car
Rental System, Inc., Alamo Rent-A-Car, Inc., and Spirit Rent-A-Car, Inc., as
well as some of the country's leading solid waste services and electronic
security services companies, which operate under their regionally known
business names.

SOURCE  Republic Industries, Inc.