---

Toyota Challenges Republic in California

31 July 1997

Toyota Challenges Republic in California

    TORRANCE, Calif., July 31 -- Toyota Motor Sales (TMS),
U.S.A., Inc. today announced that it is taking action in California to block
Republic Industries, Inc. from acquiring Anderson Lexus, located in Fremont,
Calif.
    In a petition filed with the California New Motor Vehicle Board, TMS
states that it is withholding consent for the transfer of Anderson Lexus,
because of Republic's continuing refusal to accept or abide by TMS' multiple-
dealer ownership policies.  Developed well before Republic became involved in
the auto retail business, these policies are designed to protect the public,
other dealers and Toyota against the dangers that could flow from a rapid
concentration of auto dealerships under the control of a single owner.  With
the sole exception of Republic, every other publicly-owned dealer group that
has acquired Toyota or Lexus dealerships has agreed to Toyota's multiple-
dealer policies.
    "Republic's appetite for dealerships appears insatiable, regardless of the
potential dangers to the public interest," said Yale Gieszl, TMS executive
vice president.  "We now plan to bring the matter to a head through an
expedited hearing before the California New Motor Vehicle Board.  We're
looking forward to the day we can fully air our concerns and get Republic to
publicly respond to many unanswered questions."
    Among those questions is why Republic insists on pursuing a rapid
acquisition strategy that reportedly includes paying premium prices to acquire
auto dealerships.
    "We see a company intent on acquiring one dealership after another to
quickly add those profits to their bottomline," said Gieszl.  "On the other
hand, Toyota has invested 40 years of hard work and billions of dollars to
build its U.S. operations.  Because we're in this business for the long term,
we have the responsibility to do what's right for our customers and dealers,
including the obligation to see that those who represent us in the market are
not just the highest bidders on an acquisition binge."

SOURCE  Toyota Motor Sales, U.S.A., Inc.