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American Honda Seeks Federal Court Action in Tennessee and Alabama in Effort to Halt Republic Industries Dealership Acquisitions

1 October 1997

American Honda Seeks Federal Court Action in Tennessee and Alabama in Effort to Halt Republic Industries Dealership Acquisitions

    TORRANCE, Calif., Oct. 1 -- American Honda Motor Co., Inc.,
announced today it has filed actions in United States District Courts in
Tennessee and Alabama against Republic Industries.  Among other things, the
actions ask the courts to determine that Honda's withholding its consent to
Republic's proposed acquisition of three dealerships in Tennessee and one in
Alabama is a lawful enforcement of the company's Automobile Dealer Sales and
Service Agreement and Policy on Public Ownership.
    Along with American Honda's Dealer Agreement, the Public Ownership Policy
prohibits publicly held entities from owning 50 percent or more of a
dealership, limits the number of dealerships any one entity may acquire and
prohibits the ownership of geographically contiguous dealerships.
    "American Honda has fully committed itself to protecting the interests of
all our dealers and customers throughout the country," said Dick Colliver,
executive vice president of American Honda.  "Our actions in Tennessee and
Alabama send a clear signal to Republic Industries that we have no intention
of allowing it to acquire dealerships in violation of our Dealer Agreement and
Public Ownership Policy."

SOURCE  American Honda Motor Co., Inc.