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He added, "We certainly see growth tapering off."īut with growth of 11 percent in 2013 and 5 percent in 2014, those increases weren't going to last, he said.
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"And if they've got extra money available to them in any given month, it's being spent in the general economy at restaurants and movie theaters and theme parks, and ultimately it makes affordability of an automobile better." "The individuals and families that buy Toyotas obviously are mindful of budgets," he said. Having that extra cash makes a difference for Toyota customers. "However, the consumer is experiencing lower prices at the pump, and that's putting more discretionary income in their pocketbooks." "There's no doubt that the job growth, due to the price of a barrel of oil, has dampened, and business investment and capital investment has been reduced in many of those companies," Collins said. The drop in oil prices in 2014 and this year has mixed effects on the company. He said the foundation of its success in recent years has been the economic recovery coupled with high crude oil prices that lifted many Gulf States Toyota distribution areas. It also carries $35 million worth of Toyota parts in inventory. The company, founded in 1969, employs 2,000, mostly in the Houston area. More than 300,000 new Toyotas pass through the company's processing center near Bush Intercontinental Airport each year, Collins said. It brought in $7.6 billion in revenue in 2014, up from $7.5 billion the year before. "There's no doubt that they will provide us with a competitive advantage in the marketplace in the Dallas area."Īfter several years of growth, the regional Toyota distributor grew 4 percent last year by number of cars delivered, Collins said.
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"The fact that Toyota will have 4,000-plus associates and their families residing here in Texas, I think is going to give us a boost when you look at the tremendous advocacy that Toyota employees have for their products," he said. Houston-based Gulf States, which delivers Toyotas and Scions to 155 dealerships in Texas, Louisiana, Mississippi, Arkansas and Oklahoma, will soon have its supplier close to home.
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Collins expects 3 percent growth this year as more cash in customers' pockets from lower gasoline prices offsets less spending in the oil and gas industry.Ĭhronicle 100: Read more about Houston's leading companies and explore our interactive databases. The company brought in the most revenue in 2014 of private companies surveyed by the Houston Chronicle. Gulf States Toyota tops the Chronicle 100 list of private companies for the fourth year in a row, and president Martin Collins expects the company to continue to grow and benefit from Toyota moving its North American headquarters to a Dallas suburb. Gary Fountain/For the Chronicle Show More Show Less Gary Fountain/For the Chronicle Show More Show Less 3 of3 Martin Collins, president of Gulf States Toyota, at their vehicle processing center, with a transport truck of Toyotas that are headed for one of their dealers. Gary Fountain/For the Chronicle Show More Show Less 2 of3 Martin Collins, president of Gulf States Toyota, at their vehicle processing center, with a transport truck of Toyotas that are headed for one of their dealers. 1 of3 A transport truck of Toyotas that are headed for one of their dealers.