Warren Buffett's Berkshire Hathaway Inc. has acquired Van Tuyl Group, the fifth largest U.S. auto dealership group and plans to extend it through additional purchases. The annual capacity of the company founded 60 years ago is 220,000 vehicles.
In recent months, the US auto dealers show rather good results in the context of overall economic recovery in the United States and amid a 10-year high in new car sales.
Berkshire Hathaway will provide the whole range of services: from providing loans to buy cars to car insurance in Warren Buffett's insurance company Geico.
It is noteworthy that Mr. Buffet lost about $700 million on his investment in UK supermarket operator Tesco. Buffet has been holding a stake in the company since 2007. But his investment firm suffered substantial losses after Tesco shares fell about 20% in September.
