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Republic Files Action Against Toyota; Seeks Civil and Criminal Penalties

7 August 1997

Republic Files Action Against Toyota; Seeks Civil and Criminal Penalties

    FORT LAUDERDALE, Fla., Aug. 7 -- Republic Industries, Inc.
today announced that it has been unable to work out a compromise
with Toyota Motor Sales USA, Inc. regarding Republic's ownership of Toyota
dealerships.  Republic said it will now vigorously pursue its legal rights to
achieve its objectives.
    Republic also announced that it has filed a petition with the Tennessee
Motor Vehicle Commission seeking a declaratory judgment, injunctive relief,
and civil and criminal penalties and sanctions against Toyota in relation to
Republic's proposed ownership of Toyota dealerships in Tennessee.
    The petition asks the Commission to declare as illegal Toyota's policies
which restrict a dealer's right to sell and Republic's ability to buy
dealerships in Tennessee.  These policies limit Republic to acquiring seven
Toyota dealerships nationally over a five-year period and require Republic to
waive forever its legal rights to own additional dealerships.  The petition
also seeks a permanent injunction forbidding enforcement of Toyota's
restrictive policies until such time as Toyota approves Republic's proposed
acquisition of certain dealerships in Tennessee.
    Steven R. Berrard, President and Co-Chief Executive Officer of Republic
Industries, said, "We have acted in good faith, trying for months to work with
Toyota.  We have made numerous proposals and have been rejected unreasonably
at every turn.  In the process we have endured Toyota's malicious and
misleading press releases and their deliberate attempts to damage the
reputation of Republic and our dealer partners.  We are no longer willing to
stand by as Toyota knowingly misrepresents Republic's intentions."
    Mr. Berrard also stated, "Toyota has insisted that their policies take
precedence over state franchise laws.  These laws are designed to protect
consumers and provide dealers with the right to sell their businesses to
qualified buyers.  We will take every legal action necessary to protect
consumers and defend our rights as a qualified buyer, and the rights of
entrepreneurs to sell their dealerships.  We will not be intimidated by
Toyota, nor will we stand idly by as Toyota attempts to intimidate small
businessmen across the country.  This is not the American way."
    Mr. Berrard continued, "This looks like an effort by Toyota to export a
system that adds costs to distribution and maintains manufacturer dominance
over its dealers.  The American way is to encourage the development of new
systems that reduce costs and provide consumers with greater choices and lower
prices.  We cannot understand why Toyota would discourage what is so commonly
accepted in the United States by imposing its arbitrary policies on its
dealers and Republic."
    Mr. Berrard commented further, "Republic Industries is committed to its
business plan and is well on its way to implementing its strategy
successfully.  We have worked hard to establish partnerships with all domestic
and most foreign manufacturers.  Contrary to what Toyota has said, we have
assembled a management team which has the most automotive experience of any
dealer group in the world."
    Mr. Berrard concluded, "Toyota has only approved Republic's ownership of
one Toyota store and one Lexus store nationwide.  We are merely seeking
approval of a minimal number of additional stores out of Toyota's more than
1,200 dealerships across the United States.  The Toyota dealers who we would
like to partner with have been recognized nationally as leaders in customer
service.  Republic will enhance their success with new capital and improved
techniques and leadership, building Toyota's brands and adding value to its
dealer network.  The consumer will come to recognize this attention to
outstanding customer satisfaction and good value as the cornerstone of our
automotive strategy at Republic."
    Republic Industries, Inc. operates subsidiaries 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.,
Spirit Rent-A-Car, Inc., Value Rent-A-Car, Inc., and Snappy Car Rental, Inc.

SOURCE  Republic Industries, Inc.