The billionaire investor, Warren Buffett is buying one of the largest car dealership chain in America, “Van Tuyl Group”, as he looks to make inroads into the automobile sales business.
Would you buy a used car from Warren Buffett?
Phoenix-based Van Tuyl Group has 78 independently operated dealerships and more than 100 franchises in ten states. The retailer, which will be named Berkshire Hathaway Automotive and be based in Dallas.
Mr.Jeff Rachor, president of Van Tuyl Group, will become Berkshire Hathaway Automotive’s chief executive.
There are already a handful of billionaire car dealers and (most likely) plenty of other more billionaire families:
Warren Buffett, the billionaire investor, in an interview said that there are huge opportunities for market consolidation in the fragmented auto dealership business, as he agreed to buy America’s fifth-largest auto retailer, Van Tuyl Group.
Norman Braman, the luxury-car king of Florida and one of the most successful car dealers in the US, has a net worth of $1.9 billion.
Billy Joe McCombs, also known as Red McCombs, founder of Red McCombs Automotive Group in San Antonio, Texas, and co-founder of Clear Channel Communications, had a published net worth of $1.93 billion.
Tom Benson, New Orleans Saints and and New Orleans Pelicans owner, took his auto dealership profits and invested in local banks. He has a net worth of $1.63 billion.
Dan Friedkin, owner and chairman of Gulf States Toyota, a net worth of $3.2 billion, has the exclusive rights to import and distribute Toyota vehicles in Texas, Arkansas, Louisiana, Mississippi and Oklahoma.
Roger Penske, the billionaire who owns Michigan-based automotive giant Penske Corporations, got his business start as a Chevy dealer in Pennsylvania and owns hundreds of dealerships, a net worth of $1.4 billion