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Toyota Says Republic Acquisition Binge Raises 'Red Flags'

22 July 1997

Toyota Says Republic Acquisition Binge Raises 'Red Flags'

    TORRANCE, Calif., July 21 -- The following statement is
attributable to Yale Gieszl, executive vice president of Toyota Motor Sales
(TMS), U.S.A., Inc. in response to today's announcement by Republic
Industries, Inc. of plans to acquire the Dobbs Automotive Group, including
four Toyota and two Lexus dealerships.
    "This latest announcement by Republic of plans to acquire 20 more
dealerships suggests that the company has no interest whatsoever in the
potential adverse impact of their dealership acquisition binge on consumers,
other dealers and the local communities they serve.  The fact that Republic
has reportedly acquired or announced plans to acquire nearly 150 separate
franchises in six months ought to raise a 'red flag'," said Gieszl.  "Toyota's
past efforts to express our concerns regarding the rapid acquisition of Toyota
and Lexus dealerships and to reason with Republic in good faith have been to
no avail.  The response from Republic has been to attack our motives, to
criticize us for getting in the way and to announce more dealership
acquisitions.  If anyone's motives and tactics are clear now, it's
Republic's... and they're not in the public's best interest."

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