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Ford Motor Company, Republic Industries Partner In Rochester Retailing Initiative

19 June 1998

Ford Motor Company, Republic Industries Partner In Rochester Retailing Initiative

    DETROIT, June 19 -- Ford Motor Company and Republic
Industries, Inc. announced today that they have reached an
agreement in principle with Ford and Lincoln Mercury dealers in Rochester,
New York to establish a Ford Retail Network (FRN) in that market.
    Eight dealers, operating nine retail outlets are involved in the venture.
Eight of the retail outlets sell Ford brand products, and one is a Lincoln
Mercury dealership.
    "Ford has been examining various forms of FRN distribution strategies,"
said Ross Roberts, president of Ford Investment Enterprises Corporation.
"Rochester provides an opportunity to work with Republic, to evaluate the
benefits and challenges associated with a different ownership structure while
at the same time retaining the operating philosophy of the other FRN's."
    Republic will take an active role in operating the dealerships.
    "Republic will partner with Ford to ensure that the Rochester FRN operates
effectively," said Steve Berrard, president and co-chief executive officer of
Republic Industries.  "Rochester offers Republic an opportunity to further
strengthen its relationship with Ford and demonstrate the effectiveness of our
business model.  We believe the outcome will be a win-win for consumers, for
dealers, for Ford and for shareholders."
    The Rochester dealers are currently examining their level of participation
in the ownership and operation of the venture.
    The FRN approach to selling cars and trucks will include unique sales and
service outlets, supplemented by neighborhood service centers providing
competitively priced service to customers.
    The sales centers will feature a large selection of both new and used
vehicles, no-haggle selling and salaried sales consultants.
    Neighborhood service centers will enhance the vehicle service process with
extended hours for maintenance, warranty and light repair work performed at
convenient locations.
    "This move will help us to improve market performance, and promises to
give customers the highest level of satisfaction when they are buying or
servicing their vehicles as we move into the Twenty First Century," Roberts
said.
    The formation of the FRN, which is expected to occur later this summer, is
subject to negotiation and execution of definitive agreements acceptable to
the parties involved, and the satisfaction of customary conditions, including
government approvals.
    Other Ford Retail Network ventures have previously been announced for
Tulsa, San Diego and Salt Lake City.