Independent distributor driven to succeed
Gulf States Toyota believes the strength of the Houston economy, the city’s growing population and the popularity of Toyota vehicles will help the independent distributor weather a national slowdown in new car sales.
New vehicle sales across the country have dipped slightly amid rising prices and interest rates, which have pushed some consumers into the used car market. The Houston company distributes some 300,000 new Toyota vehicles each year.
“Fortunately, sales within our region, while down slightly, have not
seen the same downward pressure as other areas of the country due to the better performance of the oil and gas industry,” T. Dan Friedkin, Gulf States Toyota’s chief executive, said in an email.
Gulf States Toyota ranked No. 2 on this year’s Chronicle 100 list of top-performing private companies, down one spot from last year. The distributor, founded in 1969, sells Toyota vehicles and parts to 158 dealers in Arkansas, Louisiana, Mississippi, Oklahoma and Texas. The company reported $9.2 billion in revenue in 2018, up from $8.9 billion the prior year.
While Toyota has historically dominated the Houston car market with sedans such as the Camry and Corolla, the manufacturer has seen a shift in sales toward SUVs, such as the Rav4, Highlander and 4Runner as well as pickups such as the Tundra and Tacoma. In Houston, SUVs and pickups outsold sedans by a 2-to-1 margin in April, according to the TexAuto Facts Report from InfoNation, a Sugar Land-based automobile data firm.
The Toyota Camry, a best-seller for many decades, was the only sedan among InfoNation’s top 5 best-sellers in Houston last year. The popular car fell to No. 5, down from the No. 3 spot in 2017. The Toyota Rav4 ranked No. 3 last year with local dealers selling 8,249 of the popular crossover SUV.
Regardless of vehicle type, demand for Toyotas continues to outpace its competitors due to the company’s reputation for reliability and dependability, Friedkin said. Gulf States Toyota recently completed an $11 million expansion of its parts distribution center in Sealy, adding more than 120,000 square feet of warehouse space to accommodate future parts sales demand. The company is planning to expand its vehicle distribution center to prepare for future vehicle demand as well.
“Toyota Motor Corporation President Akio Toyoda has really reinvigorated the brand from a design perspective,” Friedkin said. “He has challenged his team to again focus on making cars that are fun to drive like the new Camry, which has ultimately resonated with current and new customers.”