Benfield Motor Group has bought two Volkswagen dealerships from Scottish group Verve.

The additions, at Carlisle and Dumfries, will add £25 million to Benfield’s turnover and take it to 30 dealerships, including six with VW.

Chief executive Mark Squires said: “We have represented Volkswagen for nearly 40 years in the north-east and this gives us the chance to grow our operations and presence in the north-west with a very logical extension to our existing businesses.”

Benfield maintained 2008 pre-tax profits at £3 million despite revenue dropping by £29 million to £287 million in the recession. Squires said such profitability in a tough year was a “very credible performance”.

As the market recovers, Squires expects to build turnover up to £350 million by 2011 through acquisitions and organic growth.

Earlier this year Benfield bought a Honda franchise in Teesside and opened Hyundai, Alfa Romeo and Skoda outlets.