American Honda Seeks Republic Injunction

American Honda Motor Co. on Monday sought a federal court injunction to halt an alleged buying spree of its dealerships by Republic Industries Inc., the nation’s largest dealership group.

Republic’s aim is to be a one-stop auto sales, rental and service chain.

Torrance-based American Honda filed suit May 7 in U.S. District Court in Los Angeles, claiming Republic was violating unfair-competition law and interfering with Honda-Acura dealer agreements limiting the number of dealerships owned by one entity.

Honda’s lawsuit sought to prevent Republic from soliciting its dealers and to abide by Honda’s dealer policies.

But Republic continued its aggressive acquisition campaign and acquired, or attempted to acquire, one Acura and eight Honda dealerships in California, Florida, Alabama, Arizona and Tennessee, American Honda said Monday.

“Republic’s actions have caused continued disruption and damage to the business operations of American Honda and its dealers,” Honda executive Dick Colliver said. A hearing on the motion will be scheduled in about three weeks.

Honda limits a single owner to no more than seven Honda and three Acura dealerships to protect dealers and consumers by preventing a concentration of dealerships under common ownership, Honda said.

Fort Lauderdale, Fla.-based Republic, run by billionaire H. Wayne Huizenga, owns 154 dealerships nationwide.

“We at Republic disagree with the entire notion that Honda should be filing a federal lawsuit, and we have filed a dismissal motion,” spokesman Jim Donahue said, adding that Republic expects to have the case thrown out. “It is essentially a state’s-right issue, state franchise law, and the federal courts will stay out of it.”