One of the wealthiest men in the world, Warren Buffett, also happens to be one of the most successful investors in business history, and has assets stretching beyond any reasonable estimation. And he now has the chance to add to his lifelong list that he is the owner of the fifth-largest auto dealership chain in the US.
Warren Buffett’s Berkshire Hathaway has officially completed their acquisition of Van Tuyl Group, which until today was the largest privately owned car dealership chain in the United States of America. It has just been renamed Berkshire Hathaway Automotive. Despite the Berkshire Hathaway takeover, all of the same people are going to remain in place at the company, and Jeff Rachor will remain as company CEO and Larry Van Tuyl will continue in his position as company president and chairman.
All told, the car dealership network consists of 81 dealerships, which is actually three more than when they first announced the deal back in October. This represents a total of $9 billion in annual revenue. All of the dealerships are located in the South and Midwest, and they have locations in Illinois, Florida, Indiana, Georgia, Arizona, California, Texas, Nebraska, New Mexico and Missouri. The managing partners operating each dealership location will retain a minority interest.
Besides Geico, the auto insurance giant, Berkshire Hathaway owns 10% of BYD, which some believe Buffett will use to bring their Chinese made vehicles into the United States market.