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Republic Industries Files Legal Actions In Alabama And Tennessee Seeking Approval For Its Acquisition Of Honda Dealerships

1 October 1997

Republic Industries Files Legal Actions In Alabama And Tennessee Seeking Approval For Its Acquisition Of Honda Dealerships

    FORT LAUDERDALE, Fla., Oct. 1 -- Republic Industries, Inc.
announced today that it filed legal actions yesterday (September
30, 1997) in Alabama and Tennessee seeking declaratory approval for its
acquisition of Honda dealerships in those states. The actions follow Monday's
decision by a federal court in Los Angeles to dismiss Honda's lawsuit seeking
to block Republic's acquisition of Honda dealerships. The actions filed by
Republic yesterday preceded the complaints filed by Honda today in the same
states.
    In Alabama, Republic filed suit in the Circuit Court for Greene County,
claiming that Honda's attempt to prevent Republic's acquisition of a Honda
dealership in that state is a violation of the Alabama Motor Vehicle Franchise
Act. In Tennessee, Republic is asking the Tennessee Motor Vehicle Commission
to revoke American Honda Motor Co.'s license to do business in the state and
to order an injunction preventing Honda from interfering with its acquisition
of three Honda dealerships in that state.
    In both instances, Republic states that Honda's internal ownership
policies violate franchise law in the respective states and constitute
unreasonable interference with Republic's legal right to acquire automobile
dealerships, providing it meets the other requirements of the law.
    "Honda's actions today are a desperate attempt to hold on to a mistaken
understanding of how franchise laws work," says Steven R. Berrard, President
and Co-Chief Executive Officer of Republic Industries, Inc. "Honda experienced
a major set-back with its loss in federal court on Monday and is now grabbing
for straws. There is no basis in law for Honda's interference with our
acquisitions. Republic is asking the appropriate authorities in Alabama and
Tennessee to confirm that dealers have the right to sell, and that Republic
has the right to acquire Honda dealerships under the law. Going forward,
Republic will pursue every legal means available to protect these rights."
    Republic Industries is the largest automotive retailer in the world. The
company has various types of operating agreements with every major auto
manufacturer, except Honda.

SOURCE  Republic Industries, Inc.