U.K. Insurer To Sell Cars

In a case of modern vertical integration, British insurer Direct Line, a subsidiary of Royal Bank of Scotland, announced the creation of a Web site to sell automobiles, accessories and related financial services.

Direct Line, which operates exclusively on the Internet, is now the U.K.’s largest automobile insurer and third largest road service organization. It hopes to revolutionize the automobile sales market, as it has the auto insurance market. The insurer has committed £50 million ($81.25 million) to the venture, which will commence operations in May.

Although the new organization won’t be directly linked with the insurance site, there will be a clear association.