.............. Private company profiles
Gulf States Toyota defended its No. 1 spot among Houston’s private companies for the sixth year in a row, even as volatile oil and gas prices hampered vehicle sales in the region.
The largest independent Toyota distributor, founded in 1969, raked in $8.8 billion in revenue last year, up 7 percent from 2015, Chairman and CEO T. Dan Friedkin said.
“The strength of Gulf States Toyota revolves around our … strong focus on the Toyota customer, which is carried out each day through the hard work of our associates and the best dealers in the country,” Friedkin said. “When you combine that with the superior quality
of the Toyota brand and the loyalty of our customers, you’ve got a pretty good formula for success.”
While last year’s revenue growth was down compared with gains made in the last few years, Friedkin said the company was able to still exceed expectations “given the strength of Toyota’s product lineup and the tremendous customer engagement efforts of our dealers.”
He added that the company, which employs 1,900 in the Houston area and serves 157 dealer locations in Arkansas, Louisiana, Mississippi, Oklahoma and Texas, saw particular sales strength last year in Dallas-Fort Worth, San Antonio and Austin.
Toyota and Gulf States Toyota lead four of the five largest market segments with the Corolla, Camry, RAV4 and Highlander/4Runner, Friedkin said. He noted that the company is also looking forward to this summer’s launch of the next-generation Camry, one of the best-selling passenger cars in the last 15 years. Kelley Blue Book ranked the 2016 Toyota Camry as the No. 10 most awarded car of the year.
Yet amid highperforming sales, Friedkin noted the impact of the energy sector’s downturn on the new-car sales market.
By August of last year, InfoNation lowered its projection for newvehicle sales in Houston to between 290,000 and 300,000 from its January estimate of 357,000. In 2015, more than 376,481 vehicles were sold locally.
Friedkin expects the Houston new-vehicle market will be down 7 to 10 percent this year.
“If we continue to see oil prices in their current range, we expect the light truck and SUV market will continue to grow,” he said. “Right now it represents almost 65 percent of the vehicle market.”
With Toyota’s increased production of SUVs and trucks, the company is wellpositioned to capitalize on the expected trend, he added. He also noted that Toyota has just entered the fastest-growing segment in the market with its CHR entry-level SUV.
“We have some of the strongest Toyota dealers in the country in Houston, and they have demonstrated the ability to outperform the industry, especially in a weaker market,” Friedkin said. “Additionally, Gulf States Toyota and its dealers are making strategic investments in facilities, processes and overall operations to better service Toyota customers both in Houston and throughout our region.”
Part of those strategic investments include laying the foundation for two new dealerships in Texas: one in the Austin market at Cedar Park and the other in Prosper serving the Dallas market.
Already seeing strong results in 2017, Friedkin expects significant growth in fixed operations the rest of the year to drive parts and accessory growth and dealer profitability. He also anticipates market share growth to continue.
The company helped Toyota play a leadership role in handling the Takata airbag recalls by working closely with dealers to raise awareness of the issue and speed up recall completion rates.
In a sad note, company founder Thomas Friedkin passed away in March, survived by his wife, Susan, and four children including T. Dan Friedkin.
The younger Friedkin noted that beyond Gulf States Toyota, the parent Friedkin Group also had a successful 2016 with milestones achieved in the luxury hospitality, golf and entertainment industries.
The group’s Auberge Resorts Collection opened new luxury resorts as part of its global expansion. It also opened a Tom Fazio-designed golf course in South Carolina, and its Imperative Entertainment company announced a number of major film projects in development.
“We are intently focused on growing each of the companies within the Friedkin Group and providing the investments and resources necessary to achieve and sustain this growth,” Friedkin said. “Whether it’s automotive, hospitality, golf or entertainment, we go into every venture with a goal of being a leader in that industry.”