What is NAMAD and How Can It Help Minority Auto Dealers?

The automotive industry is a powerhouse of the American economy, driving job creation, innovation, and economic growth. Yet, the path to success for minority entrepreneurs and professionals in this sector hasn’t always been smooth. The National Association of Minority Automobile Dealers (NAMAD) is a guiding force, championing greater diversity and inclusivity throughout the automotive industry.

As a minority-owned business, Willowood Ventures understands firsthand the hurdles and opportunities faced by minorities in the automotive world. This guide dives deep into what NAMAD is, its historical impact, its mission, and the ways it helps both aspiring and established minority auto dealers thrive in this dynamic industry. NAMAD 2024 in Miami is it’s annual conference it is being held in Miami. Many of these topics will be discussed in detail there!

A Historical Look at NAMAD and Its Impact

Since its founding in 1980, NAMAD has been a tireless advocate for diversity in the automotive industry. Their mission: to level the playing field and ensure everyone has a fair shot at success. This commitment has fostered industry growth and allowed more minority-owned dealerships to flourish.

NAMAD’s influence extends to working with both lawmakers and car manufacturers to create more opportunities for minority groups in retail and service, ensuring their rightful place in the industry.

Their dedication to supporting African American and other minority-owned businesses is evident in events like the upcoming 44th Annual Membership Meeting, taking place August 20-23, 2024, at the Fontainebleau Miami Beach. NAMAD 2024 promises to be an impactful gathering where minority dealers can connect, learn, and grow.

Despite the challenges, NAMAD has achieved significant milestones. It stands as a powerful voice for minority dealers, tirelessly advocating for their deserved opportunities within the automotive world.

NAMAD’s Mission and Purpose: Driving Diversity Forward

NAMAD’s core objective is to ensure a substantial and meaningful presence of minority businesses and employees across all sectors of the automotive economy. This encompasses:

• Boosting the number of minority-owned dealerships across the US
• Promoting workplace and supplier diversity within automotive manufacturing
• Supporting minority participation in the retail sales and service aspects of the automotive industry

The organization is dedicated to building strategic alliances and advocating for policies and practices that prioritize diversity and economic equity across all facets of the American automotive industry.

The Reality of Minority Representation in Auto Dealerships

While strides have been made, the representation of minorities in auto dealerships hasn’t fully caught up with the evolving demographics and consumer trends in America. The following statistics highlight this disparity:

• 32% of all new vehicles are purchased by minorities.
• Only 6% of American automotive dealerships are minority-owned.
• 95% of minority dealers are first-generation owners.
• The growth of minority dealerships hasn’t fully rebounded to the levels seen before the 2019 economic downturn.

These figures underscore the crucial work ahead to elevate diversity and inclusion within the automotive industry. It’s a challenge that NAMAD continues to address with unwavering determination.

How NAMAD Empowers Minority Auto Dealers

NAMAD offers a comprehensive suite of services and support to empower minority auto dealers:

1. Advocacy: Shaping a More Inclusive Industry

NAMAD engages with policymakers at all levels—local, regional, and national—to establish fair business practices that create sustainable opportunities for minority entrepreneurs in the automotive industry.

2. Networking: Building a Powerful Community

The organization fosters connections among minority dealers, creating platforms to share experiences, insights, and best practices. This network is especially valuable for those new to the industry, providing guidance and support.

3. Education and Training: Staying Ahead of the Curve

NAMAD provides educational programs and resources to keep minority dealers informed about industry trends, best practices, and business management skills, empowering them to stay competitive and adapt to evolving market dynamics.

4. Partnerships with Manufacturers: Expanding Opportunities

NAMAD collaborates closely with car manufacturers, both domestic and international, to promote diversity within their dealership networks and create more opportunities for minority-owned dealerships to represent their brands.

5. Financial Resources: Fueling Growth and Success

The organization connects minority dealers with financial resources and programs tailored to support their growth and sustainability.

African American Owned Car Dealerships: Stories of Trailblazers

The history of black-owned car dealerships in America is rich with inspiring stories of resilience and success. Here are a few pioneers who broke barriers and paved the way for future generations:

Homer B. Roberts: A Legacy of Firsts

In 1923, Homer B. Roberts made history as the first African American to be awarded a new car franchise—the Hupmobile franchise in Kansas City, Missouri. His achievement was a pivotal moment, laying the foundation for the growth of black-owned dealerships in America.

Ed Davis: Challenging the Status Quo

Ed Davis became a Studebaker dealer in Detroit in 1940. His determination led to another historic milestone in 1963 when he became the first African American to receive a Big Three franchise in the post-World War II era, with a Chrysler Corporation franchise in Detroit.

Al Johnson: Leading the Way at GM

In 1967, Al Johnson broke new ground by becoming the first African American to receive a GM franchise with an Oldsmobile dealership in Chicago. He further solidified his legacy by acquiring a Cadillac dealership in Chicago in 1971, another historic first for African American dealers.

These trailblazers, along with countless others, have demonstrated the immense potential of African American owned car dealerships, inspiring generations to follow in their footsteps and make their mark on the automotive industry.

The Future of Minority Representation in Auto Dealerships

The automotive industry is undergoing a period of rapid transformation, with the rise of electric vehicles, changing consumer preferences, and advancements in technology. These shifts present both challenges and opportunities for minority auto dealers.

The Current Landscape: Progress and Areas for Growth

Recent data provides a glimpse into the current state of minority representation across various automotive brands:

• General Motors: 342 minority-owned dealerships out of 4,015 total dealerships.
• Stellantis: 264 minority-owned dealerships out of 2,591 total dealerships.
• Ford Motor Company: 237 minority-owned dealerships out of 3,027 total dealerships.
• Toyota: 102 minority-owned dealerships out of 1,244 total dealerships.
• BMW: 22 minority-owned dealerships out of 365 total dealerships.
• Mercedes-Benz: 25 minority-owned dealerships out of 384 total dealerships.
• Hyundai: 66 minority-owned dealerships out of 841 total dealerships.
• Kia: 72 minority-owned dealerships out of 788 total dealerships.
• Genesis: 24 minority-owned dealerships out of 240 total dealerships.

These numbers, while showing progress, also highlight the substantial room for growth in minority representation across all brands and dealership categories.

Emerging Opportunities: New Avenues for Growth

The evolving automotive landscape, with the rise of electric vehicles and changing consumer preferences, presents new opportunities for minority entrepreneurs to enter the market and expand their operations.

Diversity’s Impact: A Stronger Industry for All

Increasing minority representation in auto dealerships isn’t just about social equity—it’s about better serving an increasingly diverse customer base and creating a more dynamic and innovative industry.

• Meeting the Needs of a Diverse Market: With minorities accounting for 32% of all new vehicle purchases, dealerships that reflect this diversity can cultivate stronger customer relationships and achieve better sales performance.
• Reaching Underserved Markets: Diverse dealerships often have a deeper understanding of cultural nuances and community connections, enabling them to connect with underserved markets more effectively.
• Driving Innovation: As many minority dealers are first-generation owners, they bring fresh perspectives and innovative approaches to sales, service, and community engagement.

By fostering a more inclusive dealership landscape, the entire automotive retail sector benefits from new ideas, broader market reach, and stronger community relationships.

Challenges and Opportunities: Navigating the Road Ahead

Despite the progress made, challenges persist for minority entrepreneurs in the automotive industry:

• Access to Capital: Securing financing remains a hurdle, as many first-generation dealers may lack the generational wealth often seen in long-established dealership families.
• Representation in Prime Markets: Minority representation remains disproportionately low in prime markets and with luxury brands, underscoring the need for ongoing advocacy and support to level the playing field.
• Sustaining Growth: The effort to restore minority dealership numbers to pre-2019 levels demonstrates resilience but also highlights the need for continued targeted support and development programs to ensure long-term success.

Despite these challenges, the data indicates a slow but steady positive trend across most brands. This progress, combined with a growing awareness of the crucial role of diversity in business, points to a more inclusive future for the automotive industry.

Diversity as a Driving Force: A Vision for the Future

As we look to the future, increasing diversity in auto dealership ownership is not just a matter of fairness—it’s a strategic necessity for the industry to thrive in a rapidly changing world.

• Meeting the Needs of a Changing Market: The automotive industry must adapt to changing demographics to remain competitive and relevant. Dealerships that reflect the diversity of their customer base are better positioned for success.
• Fueling Innovation: A diverse dealer body brings a wider range of perspectives and experiences, fostering innovation in sales strategies, customer service, and community engagement.
• Navigating Technological Shifts: The automotive industry is undergoing significant technological advancements. Fresh viewpoints from a diverse dealer network are crucial for navigating these changes successfully.

The path to true representation in auto dealership ownership may be long, but it’s a journey worth taking. With continued support, advocacy, and the creation of new opportunities, we can envision a future where the diversity of dealership ownership mirrors the diversity of the communities they serve.

Willowood Ventures: Partnering with Minority Auto Dealers

At Willowood Ventures, we’re proud to support NAMAD’s mission and contribute to the growth of minority representation in the auto industry. Our founder, Dominic Scruggs, is not only a NAMAD member but also a Minority Dealer Candidate himself. This gives us a deep understanding of the challenges and opportunities faced by minority dealers today.

We offer a suite of services designed to empower both established and aspiring minority auto dealers:

• Facebook Sales Events: Expand your reach and drive sales through our innovative Facebook Sales Events, harnessing the power of social media marketing.
• Business Development Center (BDC) Services: Improve lead management, conversion rates, and customer satisfaction with our expert BDC team.
• Targeted Email Campaigns: Stay connected with customers and attract new ones with our professionally designed and managed email campaigns.
• Buyback Sales Events: Boost sales and acquire inventory with our effective Buyback Sales Events.
• Consulting Services: Receive personalized guidance to optimize your dealership operations and enhance profitability.

Whether you’re a NAMAD member or not, Dominic and the Willowood Ventures team are passionate about helping minority auto dealers succeed. We understand your challenges because we’ve walked in your shoes.

The Road Ahead: Embracing a More Diverse Future

The pursuit of true diversity and inclusion within the automotive industry requires a collective effort. Organizations like NAMAD provide essential support, advocacy, and resources, but the success of individual dealers also hinges on their adaptability, innovation, and commitment to exceptional customer service.

At Willowood Ventures, we believe that a more diverse auto industry benefits everyone. It creates opportunities for minority entrepreneurs, strengthens the industry as a whole, and better serves the needs of the diverse communities we live and work in.

If you’re a minority auto dealer striving to grow your business or an aspiring dealer ready to make your mark, we’re here to support you. Our services are designed to give you the competitive edge you need in today’s market.

Ready to take your dealership to the next level? Let’s connect! Call us today at 833-735-5998 to explore how Willowood Ventures can help you achieve your goals. Together, let’s accelerate the journey toward a more diverse and inclusive automotive industry.

FAQs About NAMAD and Minority Auto Dealerships

1. How can I become a member of NAMAD?

To join NAMAD, you generally need to be a minority-owned dealership or a minority individual working in the automotive industry. Visit the NAMAD website for specific membership requirements and the application process.

2. What defines a minority-owned dealership?

A minority-owned dealership is typically defined as one where at least 51% of the ownership is held by individuals from recognized minority groups, including African Americans, Hispanic Americans, Asian Americans, and Native Americans.

3. How has the number of black-owned car dealerships changed over time?

The overall trend in the number of black-owned dealerships has been positive since NAMAD’s formation. However, they still make up a small portion of all dealerships and haven’t grown at the same rate as the changing demographics of the U.S.

4. What are some challenges faced by African American owned car dealerships?

Common challenges include access to capital, getting prime locations and desirable brands, and overcoming historical barriers that have limited entry into the industry. NAMAD actively works to address these challenges through advocacy and support programs.

5. How can Willowood Ventures help my minority-owned dealership?

Willowood Ventures specializes in services designed for minority-owned dealerships, such as Facebook Sales Events, BDC services, targeted email campaigns, and personalized consulting. We’re happy to discuss your specific needs and how we can help you thrive.

6. What financial resources are available for minority entrepreneurs looking to open a car dealership?

Several financial resources are available, including Small Business Administration (SBA) loans, minority business grants, and manufacturer-sponsored programs. Additionally, organizations supporting minority-owned businesses often provide guidance on accessing capital and financial planning.

7. How does owning a black owned car dealership differ from a non-minority owned dealership?

While the core business operations are similar, black owned car dealerships may face unique challenges and opportunities. These can include accessing certain markets, building trust within minority communities, and navigating potential biases in the industry. However, they also have the advantage of bringing diverse perspectives and potentially reaching underserved customer bases.

8. Are there specific programs or initiatives aimed at increasing the number of African American owned car dealerships?

Yes, several manufacturers have diversity initiatives aimed at increasing minority representation in their dealer networks. These programs often include training, mentorship, and financial support. Additionally, organizations like the National Association of Minority Automobile Dealers (NAMAD) advocate for and support the growth of African American owned car dealerships. Many of these programs will be displayed at NAMAD 2024 in Miami.

9. How can existing minority-owned dealerships expand their business?

Expansion strategies for minority-owned dealerships include diversifying brand offerings, exploring new locations, investing in digital marketing and online sales platforms, and participating in manufacturer-sponsored growth programs. Networking with other successful minority dealers and seeking mentorship can also provide valuable insights for expansion.

10. What role do minority-owned dealerships play in their local communities?

Minority-owned dealerships often play significant roles in their communities beyond selling cars. They frequently serve as economic anchors, providing jobs and supporting local initiatives. Many are involved in community outreach, sponsoring local events, and participating in charitable activities. This community involvement can foster strong customer loyalty and enhance the dealership’s reputation.

Source Links

1. Understanding Networking in Nomad – https://mrkaran.dev/posts/nomad-networking-explained/
2. Orbee at NAMAD – https://www.orbee.com/event/namad-2024
3. How minority dealers create unique opportunities for OEMs and buyers – https://www.cbtnews.com/how-minority-dealers-create-unique-opportunities-for-oems-and-buyers/
4. PowerPoint Presentation – https://fordmda.com/wp-content/uploads/2024/01/FORD-MDA-Welcome-info-sheet.pdf
5. How NAMAD dealers are adapting to current auto industry hurdles — Fernando Varela, Chairman – https://www.cbtnews.com/how-namad-dealers-are-adapting-to-current-auto-industry-hurdles-fernando-varela-chairman/
6. Minority franchise dealers increased by almost 9% in 2021, NAMAD data shows – https://www.cbtnews.com/minority-franchise-dealers-increased-by-almost-9-in-2021-namad-data-shows/
7. Reflecting the Community: Diversity at the Dealership – https://www.nada.org/nada/nada-headlines/reflecting-community-diversity-dealership
8. NAMAD Mini Virtual Conference – https://namad.vfairs.com/
9. FCA US LLC Dealer Diversity Program – https://www.minoritydealers.com/partners-minority.html
10. NAMAD Conference – Dealerslink – https://public.dealerslink.com/events/namad-conference/
11. National Association of Minority Automobile Dealers (NAMAD) – https://www.tsnn.com/organizers/national-association-minority-automobile-dealers-namad
12. NAMAD NEXTGEN – NAMAD – https://namad.org/namad-nextgen/
13. Ally and NAMAD Recognize Emerging Auto Dealership Leader with the ‘Ally Sees Her’ Award – https://media.ally.com/2019-07-09-Ally-and-NAMAD-Recognize-Emerging-Auto-Dealership-Leader-with-the-Ally-Sees-Her-Award
14. Nomad (motorcycle club membership) – https://en.wikipedia.org/wiki/Nomad_(motorcycle_club_membership)
15. 4058_PA_AutoNews_Advertorial_FairCredit_small.indd – https://www.nada.org/media/3486?id=21474855547
16. Are You an Inventory Investor or Speculator? – Dealerslink – https://public.dealerslink.com/are-you-inventory-investor-or-speculator_15/
17. VINCUE/Orbee Partnership Redefines Automotive Advertising – https://vincue.com/resources/technology/vincue-orbee-partnership-redefines-automotive-advertising/