Texas Law Creates Loophole for Berkshire Hathaway Dealerships
Gov. Greg Abbott has signed a bill that clears the way for Berkshire Hathaway Inc. to sell cars in Texas while manufacturing RVs in Indiana, resolving an ongoing dispute between Berkshire Hathaway Automotive and the Texas DMV.

Warren Buffett’s Berkshire Hathaway Inc. owns the Berkshire Hathaway Automotive group and RV manufacturer Forest River, an arrangement that put the investment firm at odds with Texas regulators.
Photo by Fortune Live Media via Flickr
AUSTIN — Texas Gov. Greg Abbott has signed Senate Bill 1415 into law, effectively resolving a dispute between Berkshire Hathaway Automotive and the Texas Department of Motor Vehicles.
The auto group owns 85 dealerships in 10 states, including 28 in Texas, most of which are in the Dallas-Fort Worth area. It was known as the Van Tuyl Group until 2015, when Berkshire Hathaway Inc., the Omaha, Neb., firm helmed by billionaire investor Warren Buffett, acquired the then-81-store operation.
In 2017, the Texas DMV attempted to revoke Berkshire Hathaway’s dealer licenses, citing state laws prohibiting a single company from manufacturing and selling vehicles. DMV officials made their case based on the fact that the dealer group’s parent company also owns Forest River, an Indiana RV factory.
SB 1415 creates a loophole, allowing one company to build and sell vehicles if they are of different types. The bill comes as no relief to Tesla Inc., which only recently dropped a prolonged campaign to operate physical dealerships in the state, and Cummins Inc., which sells and services heavy-duty engines.
State Sen. Kelly Hancock authored the bill — and an earlier incarnation, which failed to advance — and applauded its passage in a written statement.
“SB 1415 fixes an arcane distinction in Texas statute that prevented any manufacturer of one type of vehicle from owning an interest in a dealership, even for a completely different type of vehicle,” Hancock wrote, in part. “This bill being signed into law is a small yet important step in the free market direction.”
Originally posted on Auto Dealer Today
More Compliance

Line 1 Is Not a Junk Drawer
Rolling products into the cash price — even if the bank told you to — misrepresents the vehicle’s value and runs afoul of four federal laws.
Read More →
Dueling Banjos in the Car Biz
Reports and accounts at variance show auto dealers’ trust profiles have risen in many consumers’ minds but that there remains a need for greater transparency by some.
Read More →
NADA and the Miracle on 34th Street
Automotive dealers should follow the National Automobile Dealers Association's consumer-friendly guidelines in order to minimize their legal risks.
Read More →
Another Look at a Recent Data Breach
Get caught up on the most pressing legal and regulatory matters facing dealers and F&I professionals, including data security, shotgun purchases, and inconsistent payment quotes.
Read More →

The Best Thing a Dealer Can Do to Avoid Legal Problems
Citing the issue is a strategy borrowed from the legal field itself.
Read More →
Fines of the Times
Civil penalties for noncompliance with federal auto retail and finance rules and regulations can add up quickly. Use this checklist to cover your bases.
Read More →
Goodwill and Car Dealers
A dealer goodwill tale is a cautionary tale worth paying attention to.
Read More →
The Regulatory Empire Is Striking Back
President Trump - entropist and corporate disruptor in consumer law
Read More →
