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Texas Economy — continued from page 36“Even with our inventories so low — down to 15 days supply— we still sold the same number of cars as during 2010,” she says.“But because of low new-car inventories, we sold a tremendousnumber of used cars last year.”Buyers returning to the showroom after several years will bepleased with the quality of new vehicles on sale, she says.“The competition between manufacturers is intense, so theyhave to make a better product,” she says. “The quality is betterthan we’ve ever seen, the styling is better, and as people trade intheir cars, they will be amazed.”Between 2001 and 2011, privately owned passenger cars, lighttrucks and motorcycle registrations increased in Texas by morethan 19 percent. Trucks declined slightly as a percentage of theoverall growing fleet, but still represent more than 31 percent ofall registered vehicles.The Atzenhoffer group has sold Chevrolets in Victoria sinceGreeson’s grandfather started the business in 1926. It has expandedover the years by adding Cadillac to its General Motorsofferings, as well as Mazda and Mitsubishi showrooms and a bigwholesale parts operation.“Diversification is good; it gives a wider variety for customersto choose from and an increased ownership base for the dealership,”says Greeson, president of Atzenhoffer and a TADA executivecommittee member. “In the auto industry, if you have aparts and service business, it offers something to fall back on. Werun a very large wholesale parts business selling to independentbody shops and other auto dealers. It helped in tougher times.”Oil’s opposite effectsThere’s no denying that the oil and natural gas industry is abig influence on the Texas economy and the huge fluctuationsin wholesale prices have affected government revenues as wellas costs to consumers and businesses, although not often in thesame way. For drivers and businesses, higher oil prices translateto higher prices at the gas pump.“But I think the shock value of $4 per gallon gasoline is goingto be less dramatic,” <strong>Wimbish</strong> says. “Because of this pent-updemand and a lack of inventory last year with the imports, I amvery optimistic for this year and the future.”The state’s share of gasoline tax revenue is fixed to the numberof gallons sold, not linked to price, so that revenue stream is nothelped with higher prices — in fact, reduced consumer demandhurts state coffers. Conversely, oil and natural gas severance taxrevenues increase when production and/or prices rise.For Atzenhoffer, the effect of Eagle Ford Shale Play drillingand pumping continues to be extremely positive.38
“Our retail sales in 2011 were up 27.5 percent over 2010,”Greeson says. “Eagle Ford has stimulated this particular marketwith production and infrastructure. In conjunction with that,Caterpillar is moving to Victoria building a significant plant forexcavator assembly. Initially, they announced 500 jobs, now thathas grown to 800.”Track the auto industry’s monthly sales value, oil and gasindustry prices and drilling activity, and find regular updates onthe state’s economic situation from Comptroller Susan Combs atwww.TheTexasEconomy.org. Net Value of Texas Auto SalesUnits $ millionMonth FY YTDJan-07 3,669.5Feb-07 3,717.8Mar-07 4,128.7Apr-07 4,233.3May-07 4,227.3Jun-07 4,159.0Jul-07 4,368.3Aug-07 4,383.8Sep-07 4,294.2Oct-07 4,303.5Nov-07 3,678.9Year todateDec-07 3,828.5 16,105.1Jan-08 4,034.0Feb-08 3,840.8Mar-08 3,940.0Apr-08 3,957.8May-08 3,791.7Jun-08 4,051.0Jul-08 4,148.3 Fiscal YearAug-08 3,829.4 47,698.1Sep-08 3,727.2Oct-08 3,317.6Nov-08 2,862.9FY todateDec-08 2,941.7 12,849.4Jan-09 3,022.6Feb-09 2,923.8Mar-09 2,892.3Apr-09 2,501.8May-09 2,591.1Jun-09 3,111.4Jul-09 3,071.0 Fiscal YearAug-09 3,111.9 37110.4Sep-09 3,357.9YOY %IncreaseOct-09 2,859.6 -24.3674276FYTD %Increase-20.21533551Nov-09 2,536.5FY todateDec-09 2,813.6 11,567.6Jan-10 2,815.3FYTD %IncreaseFeb-10 2,969.2 -9.971Mar-10 3,356.2Apr-10 3,011.3May-10 2,852.6Jun-10 3,490.5Jul-10 3,460.0 Fiscal YearAug-10 3,587.7 37,110.4Sep-10 3,432.6YOY %IncreaseOct-10 3,325.92.871842636Nov-10 3,231.1FY todateDec-10 3,265.1 13,254.7Jan-11 3,225.5FYTD %Feb-11 3,265.7Mar-11 3,973.8Apr-11 3,422.1May-11 3,152.2Jun-11 3,810.1Jul-11 3,757.6 Fiscal YearAug-11 4,245.8 42,107.5Sep-11 3,887.2YOY %IncreaseOct-11 3,811.813.46549754Increase14.5847021Nov-11 3,780.1FY todateDec-11 3,903.3 15,382.4Jan-121yr chg 19.5%AnnualCY05 41,955.3CY06 45,756.2CY07 48,992.8CY08 44,442.4CY09 34,792.6CY10 38,797.5CY11 44,235.2FYTD %Increase16.05241914Source: Comptroller of Public Accounts.2012 SPRING 39
Page 6 and 7: ARE YOU READY FORTAX SEASON SALES?S
Page 9 and 10: From global resourcesthrough local
Page 11 and 12: 2012 SPRING 11
Page 13 and 14: TADA Regions and Districts NORTHEAS
Page 16 and 17: An Interview WithChairman of the Bo
Page 19 and 20: Advertising OpportunityTADA Annual2
Page 21: 2012 SPRING 21
Page 24 and 25: COUNSELOR’S CORNERCase Law Update
Page 26 and 27: © 2012 Texas Mutual Insurance Comp
Page 28 and 29: “My focus is running mydealership
Page 30 and 31: Raymond Palacios:President of Bravo
Page 33 and 34: of local economies throughout Texas
Page 36 and 37: Texas Economy — continued from pa
Page 40 and 41: More About AdverseAction Requiremen
Page 42 and 43: TADA Advertiser Index Spring 2012At
Page 44: Texas Automobile Dealers Associatio

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