<PAGE>
 
                                                                 EXHIBIT 10.3.22

                      NISSAN CONTIGUOUS MARKET OWNERSHIP
                     ----------------------------------  
                     AREAS FORMATION AND LINKAGE AGREEMENT
                     -------------------------------------

This Nissan Contiguous Market Ownership Areas Formation and Linkage Agreement
(the "CMO Formation and Linkage Agreement") is entered into this 30th day of
JUNE, 1997, by and among Nissan Motor Corporation in U.S.A. ("Nissan"), and
FirstAmerica Automotive, Inc., ("FAA") concerning the commitments and
obligations of FAA and Nissan in respect to the acquisition and formation of
Contiguous Market Ownership Areas ("CMO") in the San Francisco Bay Area,
specifically, the "Peninsula CMO", the "South Bay CMO", the "East Bay CMO" and
the "East Shore CMO".

                                   RECITALS
                                   --------

WHEREAS, Nissan has developed a distribution network plan that seeks to create
CMOs in the San Francisco Bay Area (the Peninsula CMO, South Bay CMO, East Bay
CMO, and East Shore CMO);

WHEREAS, Nissan recognizes this new distribution plan is to be implemented over
time with consideration of existing dealers' rights;

WHEREAS, FAA has approached Nissan with a request to acquire and develop these
CMOs;

WHEREAS, Nissan has advised FAA that Nissan would approve their acquisition of
individual dealers within the CMOs, provided FAA satisfies Nissan's requirements
for applicants; and Nissan has advised FAA that Nissan cannot make existing
dealers sell or otherwise transfer their dealerships to FAA;

WHEREAS, FAA acknowledges the rights of existing dealers, yet commits to use its
best good faith and reasonable efforts to acquire dealerships within the CMOs,
with an intent to form the complete San Francisco Bay Area CMO marketing
territories;


WHEREAS, FAA acknowledges that Nissan's business concept for the CMO envisioned
entering into one Nissan Dealer Sales and Service Agreement with one entity for
each CMO;

WHEREAS, FAA, desires affirm its commitment to implement Nissan's CMO concept in
each CMO;

WHEREAS, FAA will have dealer subsidiaries in operation in one or more of the
Bay Area CMOs, and FAA has committed to, and intends to continue to acquire
Nissan Dealers to complete the formation and operation of all San Francisco Bay
Area CMOs;

WHEREAS, Nissan and FAA have negotiated agreements to allow FAA's operation of
Bay Area CMOs, specifically, any CMO Holding Company Agreements, the Nissan
Dealer Term Sales and Service Agreements for each individual dealer entity, if
appropriate, and the relevant Nissan CMO Agreements for Bay Area CMOs;

WHEREAS, FAA and Nissan mutually agree and acknowledge that Nissan has placed
extraordinary trust in the qualifications, integrity, and ability of FAA and
Thomas A. Price; the 
<PAGE>
 
parties mutually acknowledge that Nissan's agreement and intent to approve FAA
and Price as Contiguous Multiple CMO Operators ("CMCMO") is unique to FAA and
Price based upon Nissan's experience, relationship, and the commitments between
the parties; and, accordingly, that a prospective transferee of one or more of
the CMOs must have the same high qualifications, and, further, that even a
qualified CMO operator may not have the extraordinary qualifications necessary
to be approved as a CMCMO.

WHEREAS, FAA and Nissan desire to treat the San Francisco Bay Area CMOs as part
and parcel of a single market;

NOW, THEREFORE, in consideration of the agreements and mutual covenants set
forth herein, and other good and valuable consideration, the receipt and
sufficiency which is hereby acknowledged, the parties hereto agree as follows:


                                   AGREEMENT
                                   ---------


1.   THE CMO FORMATION AND LINKAGE AGREEMENT
     ---------------------------------------

     FAA acknowledges that the San Francisco Bay Area market is a single
     metropolitan market area which has been divided by Nissan into four CMOs
     (Peninsula, South Bay, East Bay, and East Shore CMOs) for promotion and
     marketing purposes. FAA agrees to use its best efforts to acquire all
     Nissan dealership operations within the four CMO areas. Nissan and FAA
     acknowledge that this will be a process that must occur over time, and that
     Nissan cannot take any action adverse to current dealers in order to, or in
     an effort to, require them to sell or transfer their dealerships to FAA.
     Should FAA be successful in acquiring Nissan dealerships within the four
     CMOs in the San Francisco Bay Area, Nissan agrees to approve that
     acquisition, provided that FAA continues to possess the generally applied
     qualifications necessary to become an Authorized Nissan Dealer.

     Nissan and FAA acknowledge that each CMO, though a part of the San
     Francisco Bay Market Area, has been designed to be sufficient to achieve
     the benefits of a CMO as an independent entity. Nevertheless, as a
     practical matter, and consistent with its intent as originally
     communicated, Nissan intends, and FAA agrees, that Nissan will treat these
     wholly-owned subsidiary dealer corporations, and their related Nissan
     Dealer Term Sales and Service Agreements, the Nissan Contiguous Market
     Ownership Agreements, and any relevant Nissan CMO Holding Company
     Agreement, as part and parcel of the single marketing entity in the San
     Francisco Bay Area market. Consistent with the CMO concept reflected in the
     CMO Agreements for the constituent CMOs, FAA agrees that it will exercise
     its control and ownership of each CMO in ways consistent with this
     agreement and will not take any actions or allow its subsidiaries in the
     San Francisco Bay Area CMOs to take any action inconsistent with the intent
     of this Agreement.

2.   CMO FORMATION AND LINKAGE AGREEMENT TERM
     ----------------------------------------

     This Agreement shall be in effect while FAA, or any subsidiary dealer
     entity, is operating as an Authorized Nissan Dealer within a CMO in the San
     Francisco Bay Area, unless amended 
<PAGE>
 
by the parties. Termination of all Nissan dealer activities owned or controlled
by FAA will constitute termination this CMO Formation and Linkage Agreement with
no further notice or act required by any party.

     3.   TRANSFERS
          ---------

               In view of Nissan's distribution plan and the efforts and
               resources that Nissan has expended in order to establish the San
               Francisco Bay Area CMOs, if FAA proposes or attempts to sell or
               otherwise transfer of any one of the four San Francisco Bay Area
               CMOs, or those dealership assets necessary for the conduct of
               appropriate and effective CMO Operations, without Nissan's
               consent, Nissan in its reasonable discretion, may require that
               FAA, or any subsidiary entity, sell, transfer or terminate, one,
               all, or any combination thereof, of the CMOs in the San Francisco
               Bay Area, to a proposed buyer acceptable to Nissan.

               Further, Nissan reserves the right, that, should FAA desire to
               transfer two or more of the San Francisco Bay Area CMOs, then
               Nissan, in its sole discretion, may require FAA to transfer to an
               entity possessing the same, unusually high qualifications. Should
               Nissan, in its sole discretion, not consent to a transfer of two
               or more of the San Francisco Bay Area CMOs to a single entity,
               then Nissan may require FAA to transfer these CMOs, if at all, to
               separate CMO operators, acceptable to Nissan.

               FAA acknowledges and agrees to identical Rights of First Refusal
               in the CMO interests that each individual dealer or dealer entity
               (on specific Dealership Assets and Dealership Facilities) as are
               contained the Dealer Agreements, as well as any Right of First
               Refusal contained in the individual CMO Agreements, as well as
               identical Option to Purchase provisions.

     4.   DISPUTE RESOLUTION PROCESS
          --------------------------

          A.   EXCLUSIVE REMEDY
               ----------------

               The parties acknowledge that, at the state and federal levels,
               various courts and agencies would, in the absence of this
               Paragraph 4, be available to them to resolve claims or
               controversies which might arise between them. The parties agree
               that it is inconsistent with their relationship for either to use
               courts or governmental agencies to resolve such claims or
               controversies.

               THEREFORE, CONSISTENT WITH THE PROVISIONS OF THE UNITED STATES
               ARBITRATION ACT (9 U.S.C. (S)(S) I et seq.), NISSAN, FAA, IN ITS
               OWN RIGHT AND AS THE OWNER OF THE PENINSULA CMO DEALER(s)
               (CURRENTLY INCLUDING MARIN NISSAN AND SERRAMONTE NISSAN), THE
               EAST BAY CMO DEALERS (s) (CURRENTLY INCLUDING CONCORD NISSAN AND
               DUBLIN NISSAN) THE SOUTH BAY CMO DEALER(s) (CURRENTLY STEVENS
               CREEK) AND THE EAST SHORE CMO (CURRENTLY NO FAA DEALERS WITHIN
               THIS CMO), AGREE THAT THE DISPUTE RESOLUTION PROCESS OUTLINED IN
               THIS PARAGRAPH 4, WHICH INCLUDES BINDING ARBITRATION, SHALL BE
               THE EXCLUSIVE
<PAGE>
 
          MECHANISM FOR RESOLVING ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT
          OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR TO THE RELATIONSHIP
          BETWEEN THE PARTIES, INCLUDING BUT NOT LIMITED TO CLAIMS UNDER ANY
          STATE OR FEDERAL STATUTES (hereinafter "Disputes").

          There are two steps in the Dispute Resolution Process: a) Mediation
          and b) Binding Arbitration. All Disputes must first be submitted to
          Mediation, unless that step is waived by written agreement of the
          parties. If Mediation does not resolve the Dispute to their mutual
          satisfaction, FAA or Nissan can submit the Dispute to Binding
          Arbitration.

     B.   MEDIATION
          ---------

          Any party to this Agreement can submit a Dispute to Mediation.
          Mediation is conducted by a panel consisting of a Nissan
          representative designated by Nissan, a FAA representative designated
          by FAA, and an independent professional mediator chosen by the
          parties' representatives. The Mediation Panel will evaluate each
          position and recommend a solution. This recommended solution is not
          binding.

     C.   BINDING ARBITRATION
          -------------------

          If a Dispute has not been resolved after Mediation, or if FAA and
          Nissan have agreed in writing to waive Mediation, the Dispute will be
          settled by Binding Arbitration in accordance with the procedures in
          the Commercial Arbitration Procedures of the American Arbitration
          Association, with the prevailing party to recover its costs and
          attorneys fees from the other party. All awards of the arbitration are
          binding and non-appealable except as otherwise provided in the United
          States Arbitration Act. Judgment upon any award rendered by the
          arbitrator(s) may be entered and enforced in any court having
          jurisdiction.


FirstAmerica Automotive, Inc.           NISSAN MOTOR CORPORATION in U.S.A.



By: /s/ Thomas A. Price                 By: /s/ Thomas H. Eastwood
  -------------------------------           ------------------------------------
       Thomas A. Price,                       Thomas H. Eastwood, Vice President
       President and CEO                      Nissan Division






                                        By: /s/ Jules Clavadetscher
                                            ------------------------------------
                                               Jules Clavadetscher
                                               Regional Vice President
<PAGE>
 
NISSAN DEALERSHIP FACILITIES ADDENDUM         NISSAN MOTOR CORPORATION IN U.S.A.

[LOGO]

<TABLE> 
<CAPTION> 
---------------------------------------------------------------------------------------------------------------------------------- 
FACILITIES & LOCATION SIZE (Square Feet)                 REQUIREMENTS BASED ON TOTAL PLANNING VOLUME                           
---------------------------------------------------------------------------------------------------------------------------------- 
                     Site Address                        New Vehicle   New Vehicle    Used Vehicle  Used Vehicle    Service        
                                                            Sales         Sales          Sales          Sales         Bays       
                                                          Building        Land          Building        Land                   
---------------------------------------------------------------------------------------------------------------------------------- 
<S>                                                      <C>           <C>           <C>           <C>           <C> 
A. Main Location: 1290 Concord Avenue                    4,000         73,120        0             16,876        26            
---------------------------------------------------------------------------------------------------------------------------------- 
B. Additional Location:                                                                                                        
---------------------------------------------------------------------------------------------------------------------------------- 
C. Additional Location:                                                                                                        
---------------------------------------------------------------------------------------------------------------------------------- 
D. Additional Location:                                                                                                        
---------------------------------------------------------------------------------------------------------------------------------- 
   TOTALS        BUILDING        LAND         BUILDING                                                                       
                                                 &   
                                               LAND                                                                            
---------------------------------------------------------------------------------------------------------------------------------- 
Actual         22,648        113,046       135,694       4,000         73,120        0             16,876        26            
---------------------------------------------------------------------------------------------------------------------------------- 
Guide          11,979        41,084        53,063        2,685         19,426        285           10,373        12            
---------------------------------------------------------------------------------------------------------------------------------- 
Actual         189.1%        275.2%        255.7%        149.0%        376.4%        0.0%          162.7%        216.7%        
% Guide                                                                                                                        
---------------------------------------------------------------------------------------------------------------------------------- 

<CAPTION> 
---------------------------------------------------------------------------------------------------------------------------------- 
FACILITIES & LOCATION SIZE (Square Feet)                           REQUIREMENTS BASED ON TOTAL UNITS IN OPERATION  
---------------------------------------------------------------------------------------------------------------------------------- 
                     Site Address         Service     Service          Parts         Parts                 Body          Body     
                                          Building     Land           Building       Land                  Shop          Shop     
                                                                                                         Building        Land     
---------------------------------------------------------------------------------------------------------------------------------- 
<S>                                       <C>         <C>             <C>            <C>                 <C>             <C>  
A. Main Location: 1290 Concord Avenue     13,950        20,050        4,698          3,000                  N/A            N/A    
---------------------------------------------------------------------------------------------------------------------------------- 
B. Additional Location:                                                                                                           
---------------------------------------------------------------------------------------------------------------------------------- 
C. Additional Location:                                                                                                           
---------------------------------------------------------------------------------------------------------------------------------- 
D. Additional Location:                                                                                                           
---------------------------------------------------------------------------------------------------------------------------------- 
                             BUILDING
                                &   
   TOTALS  BUILDING LAND      LAND                                                                                                
----------------------------------------------------------------------------------------------------------------------------------
Actual                                    13,950        20,050        4,698          3,000                  N/A            N/A    
----------------------------------------------------------------------------------------------------------------------------------
Guide                                     5,762         9,710         3,247          1,575                  N/A            N/A     
----------------------------------------------------------------------------------------------------------------------------------
Actual                                    242.1%        206.5%        144.7%         190.5%                                        
% Guide                                   
----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
       ----------------------------------------------------
            Makes           Planning          Units In       
            Sold             Volume          Operation       
       ----------------------------------------------------  
   <S>                     <C>               <C> 
   1.  Nissan              508               2487    
       ----------------------------------------------------  
   2.                                                        
       ----------------------------------------------------  
   3.                                                        
       ----------------------------------------------------  
   4.                                                        
       ----------------------------------------------------  
   5.                                                        
       ----------------------------------------------------  
   6.                                                        
       ----------------------------------------------------  
       TOTALS           508               2487               
       ----------------------------------------------------  
       Guide            500               2500               
       Figures                                               
       Utilized                                           
       ----------------------------------------------------  
</TABLE> 

This Dealership Facilities Addendum is executed by Dealer and Seller pursuant to
Section 2.A of the Nissan Dealer Sales and Service Agreement in effect between
said parties and in effective as of the date set forth below. Dealer and Seller
agree that as of the effective date the information above accurately describes
the Dealership Location and Dealership Facilities, the purposes for which each
location is used and the current Guides for such facilities based on the
Planning Volumes stated herein. The execution of this Facilities Addendum shall
not be construed as evidence of Dealer's fulfillment of its responsibilities
under Section 2 of the Agreement. Changes in the Dealership Location, the
Dealership Facilities or their usage from the locations and specific uses stated
herein cannot be made by Dealer without the prior written consent of Seller.
Such changes and any changes in Seller's Guides will he reflected in a new
Dealership Facilities Addendum when deemed necessary by Seller. This Dealership
Facilities Addendum cancels and supersedes any prior Dealership Facilities
Addenda executed by Seller and Dealer.

DEALER:
-------
                              FAA CONCORD N, INC
--------------------------------------------------------------------------------
                                  Dealer Name
                                Concord Nissan
--------------------------------------------------------------------------------
                               Doing Business As
By [SIGNATURE ILLEGIBLE]                       Concord       CA           94520
  ----------------------------------------- ------------------------------------
             Signature                      City             State        Zip  
Title     Dealer Principal                               3449           
     -------------------------------------- ------------------------------------
                                                          Dealer Code   
                                                         
Accuracy of information verified for Seller SELLER:    
                                            -------
                                            NISSAN DIVISION 
By: [SIGNATURE ILLEGIBLE]                   NISSAN MOTOR CORPORATION IN U.S.A.

        
Title  Assistant Regional Manager           By [SIGNATURE ILLEGIBLE]
     -------------------------------------     ---------------------------------

          4/24/97                          Title Vice President, Nissan Division
------------------------------------------       -------------------------------
              Date Verified                      

                                           By [SIGNATURE ILLEGIBLE]
                                              ----------------------------------
THIS ADDENDUM IS EFFECTIVE AS OF 
                                           Title Regional Vice President
                                                 -------------------------------