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By GEOFF FOX

gfox@tampatrib.com

Published: July 4, 2009

DADE CITY - Jim Browne looked across his lot at the used car section.

Many of the spaces were empty.

At Jim Browne Citrus Chrysler Jeep Dodge dealership on U.S. 301, just south of Dade City, that's a good thing. It means used cars have been selling.

Although sales on new cars are down somewhat, Browne's used car sales mean the business is not merely surviving but thriving - unlike some recently-closed dealerships in the Tampa Bay area that were forced under by an unprecedented auto-industry upheaval.

"We've seen industry swings we haven't seen in 50 years," Browne said. "Industrywide, we're looking at 30 percent to 40 percent declines in pure volume. Unemployment numbers are up; credit's tightening. Everybody's being negatively impacted. The volatility we've seen, we haven't seen before in our lifetime."

Browne cites the capable customer-service efforts of longtime employees vested in the company's success, and he said he has opened up his garage - and used car lot - to all makes and models.

We've gone aggressively after work on all vehicles, he said. "We want to be competitive with the Jiffy Lubes, not just geared toward Chrysler, Jeep and Dodge. We've opened up to all that."

It also helps that Browne's business has been in the same 8-acre location for about 25 years. He bought the operation in August 2007 after working for Chrysler more than 20 years.

Detroit blues

In June, officials at Chrysler and General Motors, facing bankruptcy, told Congress that they have too many dealers to support slimmed down operations.

Dealerships in Tarpon Springs, Plant City and Tampa have closed.

In Florida, new and used automobile sales account for nearly 20 percent of the state's sales-tax revenue, said Ted Smith, president of the Florida Automobile Dealers Association in Tallahassee.

From January to December 2008, Florida auto sales topped $65 billion. That's down from about $81 billion in 2007, Smith said.

"We only sold 20 new cars in April, by far the lowest number in two years, but we sold 36 new cars in May, which kind of surprised us," Browne said. "There was more concern from the consumers before Chrysler's bankruptcy announcement than after.

"We can't rely solely on the brands we represent to stay viable. Now we're selling all makes and models" of used vehicles. "We've also gotten more competitive with tires and maintenance work for other makes and models. We're refocusing on customer support."

Browne isn't the only Pasco County dealership that seems to be successfully steering its way trough the recession.

"You tighten the belt"

Tom Castriota, who owns a Chevrolet dealership in Hudson and a Honda dealership in Port Richey, said his businesses are profitable.

"But it takes working seven days a week," said Castriota, a Marine who spent six months in Iraq as a reservist in 2007. "You tighten the belt and come in every day. My wife Anita and I are involved in every deal."

Belt-tightening means cutting back on costs for things such as lawn and janitorial services that can be done by employees.

Like Browne, Castriota said that "shifting resources" has been crucial to his businesses' survival.

"We now have 50 or 60 more used cars at Gateway Honda," he said, referring to the dealership he bought recently at U.S. 19 and Ridge Road. "That makes about 150 to 200 used cars at both our locations.

"Plus, we've seen an increase up to 12 percent in our service department. We try to run it like the old corner-store pharmacies, where you can still go in and actually talk to the pharmacist. We try to be competitive with the 'Quick Lubes' of the world."

Castriota's mechanics work on most major makes and models.

"In many cases, dealers are in the red," he said. "They built big buildings. When you live on new-car business, when sales are way off, where does your revenue come from?

"I don't see this recession turning around until the first of next year. We're facing tough economic times, but at least inflation isn't going crazy."

For car dealers, success depends, in large part, on consumers with jobs and access to credit.

"Until those things shift, I think the marketplace will stay flat," Browne said. "People are unemployed or afraid of becoming unemployed."

Reporter Geoff Fox can be reached at (813) 731-1239. Keyword: Pasco Dealership, to view a photo gallery.

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