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American Honda And Republic Industries Reach Agreement

10 June 1998

American Honda And Republic Industries Reach Agreement

    TORRANCE, Calif., June 10 -- American Honda Motor Co., Inc.,
and Republic Industries, Inc. have signed a framework agreement
providing for Republic's acquisition and ownership of Honda and Acura
dealerships. It also resolves all pending litigation between the parties.  The
terms of the agreement are confidential.
    "This agreement establishes the framework for a productive and mutually
beneficial long-term relationship between American Honda and Republic," said
Richard Colliver, American Honda's Executive Vice President.  "The agreement
sets the conditions under which Republic may purchase Honda and Acura
dealerships, and allows the parties to put aside the distractions and burdens
of litigation.
    "American Honda has for some time established guidelines regarding the
number and location of dealerships that may be commonly owned, in order to
promote fair competition and enhance customer service," Colliver said.
"Today's agreement with Republic furthers these goals."
    Steven R. Berrard, President and Co-Chief Executive Officer of Republic,
said,  "Republic Industries looks forward to working more closely with
American Honda to ensure that our Honda and Acura dealerships remain among the
finest in the country. The framework agreement eliminates any uncertainty as
to our commitment to American Honda and will help ensure that both companies
can now focus more fully on meeting consumer needs."