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Toyota Says Republic Claims Without Merit

7 August 1997

Toyota Says Republic Claims Without Merit

    TORRANCE, Calif., Aug. 7 -- The following statement is
attributable to Yale Gieszl, executive vice president, Toyota Motor Sales,
U.S.A., Inc. (TMS) in response to Republic Industries, Inc., filing a lawsuit
in Tennessee:

    "There is no merit to Republic's allegations. It is a desperate attempt to
blame Toyota for Republic's own shortcomings.
    "We have attempted to negotiate with Republic on all issues in good faith,
but the only negotiating has been by Toyota.  From beginning to end, there was
essentially no change in Republic's position, i.e. agree to their plan...
period.  Toyota's policy is specifically designed to promote orderly growth
based on proven performance.  Republic's intent is to gobble up Toyota
dealerships without having its performance evaluated.
    "We have repeatedly told Republic that its rapid acquisition of a large
number of Toyota and Lexus dealerships could harm our customers, our dealers,
as well as our business.  An overwhelming majority of our Toyota and Lexus
dealers support our multiple ownership policies.  When Republic ignored our
concerns, we stood up for what we believe in and sought relief under the
provisions of various state laws and regulations.  In America, that's our
right.
    "If Republic's management is bent on spending its corporate assets to
promote, and ultimately lose, costly, meritless litigations, that's their
decision.  Toyota has been in business in the United States for 40 years.  We
will not be intimidated by this petition and will prevail."

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