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Honda Amends Republic Lawsuit to Reflect `Complete Disregard for Honda's Policies and Procedures'

12 August 1997

Honda Amends Republic Lawsuit to Reflect `Complete Disregard for Honda's Policies and Procedures'

    TORRANCE, Calif., Aug. 12 -- American Honda has amended its
lawsuit against Republic Industries to reflect Republic's numerous violations
of the Honda and Acura Automobile Dealer Sales and Service Agreement and the
Policy on Public Ownership, American Honda Motor Co., Inc., announced today.
    "Virtually everything we warned about in our first court filing is coming
true," said Dick Colliver, Honda Division executive vice president.  "Republic
has rapidly acquired Honda and Acura dealerships with complete disregard for
consumers and for American Honda's dealership agreement and policies."
    "These acquisitions pose a very real threat to marketplace competition and
customer satisfaction efforts and we will continue to challenge Republic
vigorously in Federal Court on behalf of consumers, Honda and Acura dealers
and American Honda."
    The suit, originally filed May 6 in the Federal District Court in Los
Angeles, seeks to stop Republic's stated plan to acquire more than 60 Honda
and Acura dealerships during the next 18 months.  Since then, Republic has
acquired dealerships at an even more alarming rate.
    The Dealer Agreement and Policy on Public Ownership place limits on public
ownership and the number of dealerships any one entity may acquire to seven
Honda and three Acura dealerships.
    "Republic has repeatedly said one thing and done another," Colliver said.
"In a little more than three months, Republic has violated the policy on
public ownership, the ownership limit on the number of Honda dealerships, and
several other provisions of the dealership agreement and policies."
    Republic has acquired, or has entered into agreements to acquire, more
than 150 dealerships of all makes during a seven month buying spree and has
become the nation's largest new car retailer.  Honda has urged compliance with
its agreements and caution in Republic's rapid expansion to see how Republic's
management, which is inexperienced in automotive operations, handles such
areas as customer sales and service satisfaction.
    "We've asked them to live up to our agreements and give us a chance to see
how they perform in the marketplace, but they insist on proceeding at
breakneck speed," Colliver said.  "We do not believe this is in the best
interest of consumers, our dealers and American Honda."
    American Honda and its subsidiaries employ more than 17,000 associates and
operate six manufacturing plants in the United States.  Five out of every
seven Honda and Acura automobiles sold in this country are manufactured in
North America.

SOURCE  American Honda Motor Co.