Chris Yoxon, former dealer principal at Edwards, will lead the new company. He created the new group by leading an MBO of Edwards before moving on Whyte Knight which turned over about £50m last year.
He said: “The five merged businesses have created a successful group which employs more than 300 people locally and has excellent prospects.”
The three former Whyte Knight companies will trade as Taunton Ford, Bridgwater Ford and Yeovil Ford. A spokesman for receivers Baker Tilly said the company had been sold for more than £1.5m with all 160 local jobs saved.