Republic Industries Inc. has reached an agreement with Toyota Motor Corp. that will allow it to buy more Toyota dealerships, Chairman Wayne Huizenga said.
As part of the agreement, Toyota will drop all litigation against Republic, which has bought a number of Toyota dealerships, as well as others, in its plan to become the largest U.S. new car dealer.
Huizenga and Republic President Steven Berrard met with top executives of Toyota’s U.S. division for more than seven hours at a Dallas hotel before announcing the agreement.
“There was an element of compromise,” said Yale Gieszl, executive vice president for Toyota Motor Sales Inc. “Clearly, Republic will be acquiring more dealerships, but they will be subject to certain rules and regulations of Toyota.”
Neither Gieszl nor Huizenga would discuss details of the agreement. It was not immediately clear what impact the agreement would have on Republic’s plans to acquire Appleway Toyota and Lexus of Spokane. Owner Tim Pring said Monday he had not yet received details of the agreement.
Huizenga also declined to discuss how many Toyota dealerships he plans to buy or whether Monday’s agreement would affect a similar dispute between Republic and Honda Motor Co. Ltd.
American Honda Motor Co. sought a federal court injunction Monday in Los Angeles to halt Republic’s acquisition plans. Republic has acquired or attempted to acquire one Acura and eight Honda dealerships in Florida, Alabama, Arizona, California and Tennessee, American Honda said.
Honda executive Dick Colliver said Republic’s actions have damaged Honda and its dealers. “We have asked the court to act to prevent further disruption and damage to American Honda, its dealers and customers,” Colliver said.
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