Honda Motor Co., the second-biggest foreign automaker in the U.S., reached a legal settlement Wednesday that will let auto retailer Republic Industries Inc. buy Honda and Acura dealerships.
The agreement ends Tokyo-based Honda’s lawsuits against Republic over the sale of 12 dealerships in California, Texas, Colorado, Arizona, Tennessee and Georgia. Honda had argued that a sale would violate its policy limiting the number of lots an individual or outside company can own.
Republic, which has rapidly created the world’s largest chain of auto and truck dealers through acquisitions, will buy the 12 Honda dealerships involved in the suit for an undisclosed price.
The Ft. Lauderdale-based company has bought or agreed to buy 297 dealerships in the last 18 months and has settlements to make more purchases with all the major automakers except Nissan Motor Co.
Honda, with more than 1,000 Honda and 270 Acura dealerships, is the second-largest foreign automaker in terms of U.S. sales after Toyota Motor Corp. Neither company would discuss the terms of the settlement.
