Stacey Gillman Wimbish Stacey Gillman Wimbish - Media ...

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,” Wimbish 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