Republic Wins Ruling to Buy Nissan Franchises

Republic Industries Inc., the world’s largest automotive retailer, won the right to acquire Nissan Motor Corp.’s franchises representing more than 5% of its U.S. sales. The ruling in U.S. District Court in Los Angeles allows Republic to buy dealerships as allowed under state franchise law. Nissan, the No. 6 auto maker in the U.S., had tried to enforce a 1997 oral agreement that Republic would abide by Nissan’s dealership ownership limits, which prohibit one owner from controlling stores generating more than 5% of the company’s total U.S. sales. Fort Lauderdale, Fla.-based Republic and Nissan still have no framework agreement, said Republic spokesman Oscar Suris. Such contracts set operating standards and ease the way for future franchise purchases. Republic has reached such agreements with five of the six major auto makers in the U.S. Republic began buying new-car dealerships in 1996 in an effort to consolidate the fragmented auto-retailing industry and boost profit. Republic already operates 19 Nissan dealerships. Republic shares fell 31 cents to close at $16 on the NYSE. The ruling was issued after the markets closed.