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Honda Seeks Court Order to Halt Republic Acquisition Campaign

25 August 1997

Honda Seeks Court Order to Halt Republic Acquisition Campaign

    TORRANCE, Calif., Aug. 25 -- American Honda Motor Co., Inc.,
has filed a motion in Federal Court asking for a preliminary injunction
against Republic Industries, Inc., the company announced today.  The
injunction it seeks would immediately halt Republic's buying spree of Honda
and Acura dealerships while the court hears Honda's lawsuit against Republic.
    American Honda's lawsuit charges that Republic is violating California's
unfair competition law and is interfering with the Honda and Acura Automobile
Dealer Sales and Service Agreements and Policy on Public Ownership.  The
Dealer Agreements place limits on public ownership and the number and location
of dealerships any one entity may acquire.
    Rather than allow the court to reach a decision on the case, Republic has
attempted to continue its acquisition campaign, acquiring, or attempting to
acquire, one Acura and eight Honda dealerships in Florida, Alabama, Arizona,
California and Tennessee.
    "Republic's actions have caused continued disruption and damage to the
business operations of American Honda and its dealers," said Dick Colliver,
American Honda executive vice president.  "We have asked the Court to act to
prevent further disruption and damage to American Honda, its dealers and
customers."
    American Honda formulated the Policy to protect the interests of dealers
and consumers by preventing the concentration of too many dealerships under
common ownership, encouraging dealer commitment to local communities and
promoting competition in local geographical areas so that customers will have
a meaningful choice among dealers.
    "Republic's plans would impose unacceptable risks on American Honda and
its dealership network, and threaten our ability to continue our record of
excellent customer service and satisfaction," said Colliver.
    Honda and its dealers have built a reputation for high quality products
and customer service.  J.D. Power and Associates ranks Honda and Acura #1
among import brands in customer loyalty and #3 among all automobile brands.
Republic's actions run counter to this tradition, and have been disruptive to
dealers and customers.
    American Honda filed its lawsuit on May 7, 1997, in Federal District Court
in Los Angeles.  The lawsuit was amended on August 11 because of Republic's
continued disruption and damage to American Honda, its dealers and customers.
    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., Inc.