Warren Buffet Pays Cash For 75 Auto Dealerships In One Fell Swoop

Warren Buffett's Berkshire Hathaway Inc. agreed to buy Van Tuyl Group, the largest privately owned U.S. auto dealership group.

The business, with 75 dealerships at the end of last year, will be renamed Berkshire Hathaway Automotive and will continue to be run by Larry Van Tuyl, Berkshire said today in a statement.

In an interview with CNBC, Buffett said the acquisition would be in the form of an all-cash deal. Terms weren't disclosed.

"I fully expect we'll buy a lot more dealerships over time," Buffett said.

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Car4Life - 10/2/2014 5:35:09 PM

+1 Boost

Good to know one of the wealthiest men in our country has a soft spot for the automotive industry

mre30 - 10/2/2014 6:38:19 PM

+1 Boost

Gee Mr. Musk over at Tesla...I guess if Warren Buffet, one of the smartest people in the country, just bought $2 billion or so worth of car dealers...you shouldn't hold your breath in anticipation for the "dealer" cartel model of retailing automobiles to be departing any time soon.

Better think about "plan B" where you start a dealer network.

TomM - 10/2/2014 8:48:17 PM

+1 Boost

The problem with direct sales is not inherently that the agency is owned by the manufacturer - but that there is NO alternative when you want service - since Tesla does not sell all the cars parts to others (including the car owners apparently) and Tesla does not provide computer information to others as well (Which is against the law in Massachusetts). Tesla cannot restrict sales of USED vehicles though.

While that might not be a problem for those people buying a $100,000 car and normally use dealer service - BUT it will be a BIG problem for those buying a $35,000 car - or buy a pre-owned car -and do their own service. AND it will be a big problem for those who are regularly at a distance from a servicing dealer.

In the case of Accident repair - Tesla will have to accept outside auto body service - or they will have problems with insurance as well.

The limited direct dealership might work on a very expensive limited market vehicle - but it certainly will NOT work in the mass market - and unless they change their minds - they simply will reduce the value of the car to the point that it will not be worth owning at any price

MDarringer - 10/2/2014 8:29:47 PM

+1 Boost

This bigoted old fart bag is overdue for his myocardial infarction.

chewy - 10/3/2014 6:19:44 PM

+2 Boost

Well aren't you just a peach.

Dexter1 - 10/4/2014 9:39:34 AM

0 Boost

ha ha ha ha. a horrible thought. but really funny. you're forgiven.