Warren Buffett Gets Into the Car Selling Business

Warren Buffett Gets Into the Car Selling Business

Warren Buffett wants to sell you a car and he’s making waves in the auto dealership industry today.

The Oracle of Omaha’s investment firm is acquiring the Van Tuyl Group, the biggest privately owned U.S. auto dealership group. The result will be named Berkshire Hathaway Automotive, after Buffet’s Berkshire Hathaway investment firm. In a statement CNBC, Buffett said that the acquisition would be in the form of an all-cash deal and that he expects buy more dealerships in the future. The deal will be completed in the first half of next year and will force the Van Tuyl headquarters to move from Phoenix to Dallas.

See Also: Warren Buffett Buys 10 Million Shares of GM

Van Tuyl Group CEO, Larry Tuyl will now be chairman of Berkshire Hathaway Automotive, while Jeff Rachor will be CEO. As of the end of 2013, the Van Tuyl Group had 75 dealerships that sold 130,447 new vehicles last year.

 [Source: Automotive News]

  • chavitz

    Buffet is currently allied with Chinese carmaker BYD, and probably see there will be a great opportunity to sell China-made cars