Nissan Moves to Ensure Republic Industries Complies with Dealership Policies
21 January 1998
Nissan Moves to Ensure Republic Industries Complies with Dealership Policies
CARSON, Calif. Jan. 20 -- After nearly a year of negotiations
with Republic Industries, Nissan Motor Corporation U.S.A. announced today that
talks have broken down, and, as a result, Nissan has turned down a recent
buy-sell involving Republic. Due to the requirements of state law, Nissan has
filed a lawsuit blocking the sale of two Florida dealerships.
"Since our first meeting last February, we have worked hard to forge a
productive working relationship with Republic," said Tom Eastwood, vice
president and general manager, Nissan Division. "We've based our relationship
with Republic on what we believed was trust, mutual cooperation and
understanding."
Nissan has taken a progressive approach to the rapidly changing retail
marketplace. It was one of the first manufacturers to work with Republic and
support the idea of new ways for automotive retailing. Nissan's openness to
change also is reflected by its adoption of dealer ownership policies that
allow private or publicly owned dealerships with demonstrated performance to
grow and acquire up to five percent of Nissan's total national competitive
segment registrations or 20 percent in any of the company's existing regions.
Nissan's policies also allow for owners to operate dealerships in adjoining
primary market areas, giving their dealers greater market opportunity.
Previously, Republic management indicated they both understood and would
work within Nissan's dealer ownership and other policies. On that basis,
Nissan approved numerous Republic acquisitions of Nissan and Infiniti
dealerships during the past year.
"While we hope we can amicably resolve these issues, we need some
guideposts," said Eastwood. "We won't approve any future Nissan or Infiniti
dealership purchases by Republic until our two companies come to an
understanding and formalize the basis for a future business relationship
consistent with Nissan's established policies."
As a distributor with 40 years invested in developing its dealer network,
Nissan has a charter to control its retail distribution system. That includes
determining who it does business with and who represents the Nissan and
Infiniti brands in the marketplace. Republic does not recognize Nissan's
separate and distinct role in the chain of distribution of Nissan product in
the United States. This runs counter to Nissan's previous understanding of
Republic's business objectives.
Nissan Motor Corporation U.S.A., which includes the Infiniti luxury
division, markets and distributes Nissan and Infiniti vehicles in the United
States.
In North America, Nissan's operations include styling, engineering,
manufacturing, sales, consumer and corporate financing, and industrial and
textile equipment. Nissan in North America employs more than 20,000 people in
the United States, Canada and Mexico, and generates more than 70,000 jobs
through more than 1,500 Nissan and Infiniti dealerships across the continent.
More information on Nissan in North American and the complete line of Nissan
and Infiniti vehicles can be found online at http://www.nissan-na.com.
SOURCE Nissan North America, Inc.