Autoproyecto was on the scene in Miami for the National Association of Minority Auto Dealers (NAMAD) 44th Annual Meeting. The meeting reinforced the pivotal role of minority-owned dealerships in the automotive industry. NAMAD's efforts focus on increasing minority representation across all sector aspects, from dealership acquisitions to supplier diversity. This is particularly crucial as minorities are the future majority, and statistics show that minority consumers feel a stronger connection to purchasing from minority-owned dealerships, further driving growth in this space.
Currently, minorities make up 32% of all new vehicle sales, yet only 6% of U.S. dealerships are minority-owned, and 95% of those are first-generation owners. Despite these figures, NAMAD's mission to foster economic parity within the industry is making significant strides. The purchasing power of minority consumers, coupled with NAMAD's efforts, is a promising sign for the future of diversity in the automotive industry.
Manufacturers like Mercedes-Benz are not just leading the charge on diversity, equity, and inclusion (DEI) initiatives but setting a powerful example for the entire industry.
“By tracking diversity within their workforce and leadership, they ensure they reflect the communities they serve and contribute to long-term, meaningful engagement. This goes beyond employment and sales—it's about being an integral part of the community. Their leadership in this area is truly inspiring.” Erica J. Bolden, Head of Diversity, Equity, Inclusion and People Analytics at Mercedes-Benz
Erica also won the 2024 NAMAD Diversity Advocacy Award which recognizes an individual’s courage, character and consistency in the continued fight for freedom, justice and economic equality.
NAMAD addresses the challenges of limited generational wealth among minority groups through programs like Motors Holding. "We provide up to 85% of the capital for qualified candidates to acquire dealerships. Over time, operators can buy out their investors and achieve full ownership," stated Ron McCants, Director, Motors Holding, GM. This model is transforming the landscape of dealership ownership and ensuring new opportunities for minorities.
“The industry growth in new vehicle sales is driven by the Future Majority (combined Hispanic, African American, and Asian). Specifically, Hispanics continue to lead the way in new vehicle sales growth. The power of reaching the Hispanic communities (national, regional, grass-roots) is achieved through advertisements focusing solely on Hispanic consumers doing what they naturally do in everyday situations.”
Marc Bland, Chief Diversity Officer, S&P Global Mobility
The significance of these efforts is particularly evident as Hispanics drive 68% of automotive industry growth. Brands like Kia and Chevrolet have seen tremendous success by connecting authentically with Hispanic buyers, with Kia experiencing a 44.5% growth in Hispanic sales over the past five years. Minority consumers increasingly prefer doing business with minority-owned dealerships, making diversity in ownership a strategic necessity for the industry's future.
NAMAD's initiatives are not just about equity but about urgently aligning the automotive industry with the changing demographic landscape. As the future majority, minority consumers hold the key to continued growth, making it imperative for the industry to foster diversity in ownership and leadership.
