Minority automobile dealers have weathered many storms,
but 2001 may be particularly challenging.
By Jacqueline Mitchell and Monica Link
At that time, Ford Motor Co. had the
"There's nothing wrong with
most African-American owned dealer­ (Hispanics) getting together," Danny
Turn on TV and it's there. Turn on ships, with 240 (out of 5,120 total Ford Ramirez, an Hispanic Ford dealer, told
the radio and it's there. The Internet? dealerships). It still has the highest Diversityinc.com. "But I truly believe
Still can't escape it. The "it“ is a wide­ number, with 258 of 4,122 dealers. Here that everybody needs to stick together.
spread belief that the economy is slow­ is the encouraging news: as Ford has With all the ethnic groups sticking
ing, that the bountiful tide is turning. slashed its number of dealerships over­ together, we will be much louder and
Sure, recent vehicle sales remain strong, all, it has increased its total of African- stronger."
but pundits tell us that we should be American owned franchises.
Says Vaden-Williams: "We represent
concerned.
Progress is evidenced on other fronts. all ethnic minority dealers and will con­
After all, they say, auto companies are At the time of our first survey, Lexus, tinue to do so. We will address the criti­
downsizing, and suppliers — firms that Jaguar, and others had no African- cal concerns. Going through this
service manufacturers — are really feel­ American owned dealerships.
process will help NAMAD and we’ll be
ing the pinch, laying off workers as well.
Nowadays, all the top-selling brands stronger for it."
And on top of that, they lament, con­ have at least one Black dealer, and all
On another front, NAMAD is con­
sumers are feeling slightly skittish. All of have people of color selling cars for tending with some non-minority dealers
which begs the question: what's going them.
who seek to derail dealer development
to happen to people of color who are
"Toyota is dedicated to looking at programs through state legislation.
trying to sell cars.?
opportunities when they exist and find­ Such programs were started bv
There are some 23,000 auto dealer­ ing qualified minority dealer candidates automakers as a way to recruit and train
ships in the United States selling vehi­ that fit individual locations," said Irv ethnic minorities to become dealers.
cles with marques produced both here Miller, a Toyota executive.
The fact is that many dealerships are
and elsewhere. Now here's the clincher:
Necip Soyak, an executive vice presi­ handed down through generations, but
ethnic minorities only own 1,000 of dent at Volvo, agreed, saying: "Volvo's because ethnic minorities are just now
those dealerships. That is woefully low long-term mission is for their dealer gaining a foothold in the ownership
considering that people of color — body to reflect society at large, in a nat­ department, they have generally not
African Americans, Hispanics, Asians ural and inclusive manner. We are enjoyed the same advantages.
and Native Americans — comprise more almost exclusively looking at the
For the most part, the development
than 25 percent of the U.S. population.
African-American market since it is programs have helped minorities to
"The reality in 2001 is that nobody already developed."
break through the cycle. One of the
who is part of a community of color is
NAMAD, founded in 1990 to address ways in which it does that is to allow
being given the access and opportunity concerns and challenges facing minority ethnic minorities to put up a smaller
they need," said Sheila Vaden-Williams, dealers, might be in the midst of one of amount of up-front cash than what is
president of the National Association of its most challenging years to date.
required from non-minority prospective
Minority
Automobile
Dealers
For one thing, there are internal dealers — more than a million bucks.
(NAMAD). She suggests a reasonable issues. Most recently, a band of Hispanic The automaker, over time, then buys the
starting target is 20 percent of all dealer­ auto dealers formed their own minority store back from the minority dealer.
ships, rather than the current ratio of advocacy association, signaling a poten­
Be it the economy, in-house dissen­
less than one percent.
tial rift among NAMAD ranks. sion, or any of a number of issues, these
The data gets even more specific. In Members of the Hispanic Auto Dealers are indeed trying times for minority
1997, African Americans On Wheels Association say they've felt shut-out of dealers.
conducted its first survey of minority NAMAD, though not all Hispanic auto
Said Vaden-Williams: "There are
dealerships, using figures from 1996.
dealers agree.
some some real threats on the horizon."
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African Americans On Wheels
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