NAMAD: Driving Diversity and Inclusion in the Automotive Industry
The automotive industry stands as a cornerstone of the American economy, driving innovation, creating jobs, and fueling economic growth. Yet, achieving true diversity and inclusion in this vital sector remains an ongoing journey. The National Association of Minority Automobile Dealers (NAMAD) serves as a beacon of progress, championing greater representation and opportunity for minority entrepreneurs and professionals throughout the automotive landscape.
As a minority-owned business, Willowood Ventures understands the unique challenges and tremendous opportunities that minority dealers face in today's competitive market. This comprehensive guide explores NAMAD's profound impact, its mission for the future, and how it empowers both aspiring and established minority auto dealers to thrive in this dynamic industry. With the recent success of NAMAD 2024 in Miami and the upcoming NAMAD 2025 conference at the Wynn Las Vegas, the organization continues to break new ground in advancing automotive diversity.
The Evolution of NAMAD: From Crisis to Catalyst
Founded in 1980 during a critical period of economic uncertainty, NAMAD emerged as a response to the urgent needs of minority automobile dealers facing unprecedented challenges. Under the leadership of its first president, Nathan Conyers, the organization quickly established itself as a vital advocate for diversity in the automotive sector.
Today, under the leadership of President Perry Watson IV and Chairman Damon Lester, NAMAD has grown from its initial gathering of 150 attendees to hosting over 1,300 participants at its annual conferences. This remarkable growth reflects not just the organization's success, but the increasing recognition of diversity as a business imperative in the automotive industry.
"We're up to 33.7 percent ownership among ethnic consumers in terms of purchasing vehicles. So the business case is there for us to tap into those communities. As you increase the number of minority dealers, you see an increase in ethnic minority vehicle consumption." - Perry Watson IV, NAMAD President
NAMAD's Mission: Building an Inclusive Automotive Future
NAMAD's core objective extends far beyond simple representation. The organization pursues meaningful presence and participation of minority businesses and diverse employees across all aspects of the automotive economic sector. This comprehensive approach includes:
- Expanding Dealership Ownership: Increasing the number of minority-owned dealerships across America's communities
- Workplace Diversity: Advocating for inclusive practices within automotive manufacturing environments
- Supplier Diversity: Supporting minority participation throughout the automotive supply chain
- Retail Excellence: Enhancing minority engagement in automotive retail sales and service sectors
- Policy Advocacy: Working with legislators and regulators to ensure economic parity remains a priority
According to Automotive News, NAMAD is launching "The NAMAD Diversity Difference" campaign in 2024, showcasing the remarkable stories of dealers who started as cab drivers, immigrants who arrived with $50 in their pockets, and philanthropists who have given millions back to their communities.
Current State of Minority Representation: Progress and Potential
Recent data reveals both encouraging progress and significant opportunities for growth in minority dealership representation:
2024 Industry Snapshot:
- Total U.S. Dealerships: Over 18,000 franchised dealers nationwide
- Minority-Owned Dealerships: Approximately 1,476 stores (about 8-9% of total)
- Consumer Impact: Minorities account for 33.7% of all new vehicle purchases
- Growth Trajectory: 110 new minority-owned stores added in 2022 alone
- First-Generation Owners: 95% of minority dealers are breaking new ground
The S&P Global Mobility partnership with NAMAD through the Diversity Volume Leadership Awards highlights a critical reality: U.S. Census statistics predict that by 2045, ethnic minorities will constitute the "Future Majority," making diversity not just a moral imperative but a business necessity.
Manufacturer Commitment to Diversity (Latest Data):
- General Motors: 342 minority-owned dealerships (leading the industry)
- Stellantis: 264 minority-owned dealerships (added 32 stores in 2022)
- Ford Motor Company: 237 minority-owned dealerships
- Toyota: 102 minority-owned dealerships
- Hyundai: 66 minority-owned dealerships
- Kia: 72 minority-owned dealerships
- BMW: 22 minority-owned dealerships
- Mercedes-Benz: 25 minority-owned dealerships
How NAMAD Empowers Minority Auto Dealers
NAMAD provides comprehensive support through multiple strategic initiatives designed to address the unique challenges faced by minority dealers. For dealers interested in expanding their digital presence, Willowood's Dealer Growth System complements NAMAD's efforts perfectly.
1. Strategic Advocacy and Policy Influence
NAMAD engages with policymakers at federal, state, and local levels to establish fair business practices and sustainable opportunities. The organization's advocacy extends to working directly with manufacturers to increase diversity commitments and create actionable pathways to ownership.
2. Powerful Networking and Community Building
The annual NAMAD conference has become the premier gathering for minority dealers, with attendance growing from 150 to over 1,300 participants. As Damon Lester notes, attendees often feel like they're "at a family reunion," fostering connections that lead directly to ownership opportunities.
3. NextGen Leadership Development
NAMAD's NextGen program, previously led by current President Perry Watson IV, serves as a training ground for emerging leaders. This initiative prepares the next generation through:
- Leadership development workshops
- Mentorship programs with established dealers
- Business management training
- Financial literacy and dealership economics education
For aspiring dealers looking to enhance their marketing capabilities, targeted email campaigns can help build the customer base necessary for successful dealership applications.
4. Financial Resources and Capital Access
One of the biggest challenges facing minority dealers is access to capital. NAMAD connects dealers with:
- Specialized lending programs
- Manufacturer financing initiatives
- Private equity partnerships
- SBA loan programs tailored for automotive retail
5. Manufacturer Partnerships and Collaboration
NAMAD has secured partnerships with 100% of domestic and international auto manufacturers, creating direct pathways to ownership opportunities. These relationships have resulted in dedicated diversity programs and minority dealer development initiatives across all major brands.
Trailblazers and Milestones: A Comprehensive Timeline of Minority Dealership History
The Pioneer Era (1920s-1940s)
Made history as the first documented African American to receive a new car franchise (Hupmobile) in Kansas City, Missouri. His success laid the foundation for future generations of minority dealers.
Homer B. Roberts moves to Chicago and opens Roberts-Campbell Motors Company with Kenneth E. Caldwell Jr. and Thomas J. "Big Piney" Brown.
Opened a Ford dealership in Chicago, becoming the first African American to hold a Ford franchise.
Established a Studebaker dealership in Detroit, setting the stage for future achievements.
Breaking Barriers (1960s-1970s)
Became the first African American to own import franchises (MG and Peugeot) in Chicago.
Receives a Chrysler-Plymouth franchise in Detroit, becoming the first African American to secure a Big Three franchise in the post-World War II era.
First African American to hold a General Motors franchise (Oldsmobile) in Chicago.
First African American to hold a Lincoln-Mercury franchise in New Rochelle, NY.
First African American to own a Ford dealership in Detroit.
Al Johnson becomes the first African American to hold a Cadillac franchise in Chicago.
Opens the first African American-owned Dodge franchise in Pontiac, Michigan.
First African American woman listed as a dealer principal, co-owning a Honda dealership in Ferndale, Michigan.
The NAMAD Era (1980s-1990s)
The National Association of Minority Automobile Dealers is established with Nathan Conyers as its founding president, creating a unified voice for minority dealers.
Became the first African American woman to own a Ford franchise in Breaux Bridge, Louisiana.
First African American to hold a Saturn franchise in Hartford, CT.
First African American with an exclusive Saturn franchise in Clive, IA.
NADA elects its first African American board members, Carl Barnett Sr. and Larry Brown.
First African American to hold an Infiniti franchise in Huntsville, AL.
21st Century Milestones (2000s-2010s)
First African American dealer to reach $1 billion in annual sales revenue, setting a new benchmark for success.
Begins his transformative leadership of NAMAD, serving until 2023 and helping approximately 300 minority entrepreneurs become dealership owners.
NAMAD plays crucial role in negotiations with the Obama Administration's Auto Task Force to secure protections for minority dealers during GM and Chrysler restructuring.
Appointed president at Toyota Motor Manufacturing Kentucky, becoming a champion for diversity and inclusion in manufacturing.
Ed Fitzpatrick (Coliseum Lexus of Oakland, Valley Lexus) receives NAMAD Lifetime Achievement Award.
Sandy Woods (Treasure Coast Toyota, Treasure Coast Lexus) receives NAMAD Lifetime Achievement Award and serves as TLMODA President.
Recent Achievements and Recognition (2020s)
Following George Floyd's death, automakers renew and strengthen diversity commitments. Minority dealerships increase by 14 stores despite pandemic challenges.
Minority franchise dealers increase by 9%, reaching 1,366 stores. Asian American dealers see 21% growth, the highest among all groups. Damon Lester named one of Industry Era's Best Automotive Leaders.
110 new minority-owned stores added, bringing total to 1,476 (9% of all franchised dealers). Stellantis leads with 32 new minority stores, GM adds 26. Damon Lester receives Automotive News Champion of Diversity award. Andy Koblenz (NADA) receives NAMAD Lifetime Achievement Award.
Perry Watson IV becomes NAMAD President after leading NextGen program. Jay Rivchin receives NAMAD Lifetime Achievement Award. Damon Lester nominated for TIME Dealer of the Year. Conference attendance grows to 1,300+ participants at 43rd Annual Meeting in Miami.
Damon Lester named 2024 Automotive News All-Star for Diversity and becomes NAMAD Chairman. Perry Watson IV leads as President with "NAMAD Diversity Difference" campaign launch. Toyota RAV4 wins "Top Overall Future Majority Vehicle" at 9th Annual Diversity Volume Leadership Awards. NAMAD conference at Fontainebleau Miami Beach draws record attendance.
45th Annual NAMAD Conference scheduled for Wynn Las Vegas (August 26-29). Focus on EV transition, digital transformation, and preparing for the "Future Majority" demographic shift projected for 2045.
Key Statistical Milestones
- 1980: Approximately 200 minority-owned dealerships at NAMAD founding
- 2005: Peak of 1,805 minority-owned dealerships before recession
- 2008-2010: Great Recession causes significant decline in minority dealerships
- 2017: Recovery begins with steady growth in minority ownership
- 2020: 1,257 minority-owned dealerships (pandemic year)
- 2021: 1,366 minority-owned dealerships (9% growth)
- 2022: 1,476 minority-owned dealerships (110 stores added)
- 2024: Minorities represent 33.7% of new vehicle purchases
- 2045 Projection: Ethnic minorities to become the "Future Majority" in U.S.
The Business Case for Diversity: Why It Matters Now More Than Ever
The push for diversity in auto dealership ownership isn't just about social equity—it's a strategic business imperative with measurable benefits. Research from MichAuto and industry studies consistently demonstrate the value of diverse dealership networks.
Economic Impact and Market Reach:
- Consumer Alignment: With minorities representing 33.7% of new vehicle purchases, diverse dealerships better reflect and understand their customer base
- Market Penetration: Minority-owned dealerships often excel in reaching underserved markets and building trust within diverse communities
- Innovation Driver: As 95% of minority dealers are first-generation owners, they bring fresh perspectives and innovative approaches to sales and service
- Community Investment: Minority dealers consistently demonstrate strong commitments to community development and local economic growth
For dealerships looking to maximize their market reach, Facebook Sales Events offer an effective way to connect with diverse customer segments in the digital space.
The "Future Majority" Reality:
According to U.S. Census projections, by 2045, ethnic minorities will constitute the majority of the American population. This demographic shift makes diversity in dealership ownership not just desirable but essential for the industry's future success. Forward-thinking manufacturers and industry stakeholders recognize that building diverse dealer networks today positions them for tomorrow's market realities.
Challenges and Opportunities in Today's Market
While progress continues, minority dealers face unique challenges that require targeted solutions and industry-wide commitment to overcome.
Current Challenges:
Access to Capital
Many first-generation dealers lack the generational wealth traditionally associated with dealership families. The average cost of acquiring a dealership has increased significantly, with some franchises requiring $10-15 million in initial investment.
Prime Market Representation
Minority dealers remain underrepresented in prime metropolitan markets and luxury brand franchises, limiting growth potential and profitability.
Succession Planning
With 95% of minority dealers being first-generation owners, establishing succession plans and building multi-generational dealership businesses presents unique challenges.
Industry Transformation
The shift to electric vehicles and changing consumer behaviors require significant capital investments and strategic adaptations.
Emerging Opportunities:
Despite challenges, the automotive landscape presents unprecedented opportunities for minority dealers willing to innovate and adapt. Buyback Sales Events represent just one innovative strategy helping dealers navigate inventory challenges while building customer loyalty.
- Electric Vehicle Revolution: The EV transition creates opportunities for new entrants and innovative business models
- Digital Transformation: Online sales platforms and digital marketing level the playing field for smaller dealers
- Manufacturer Commitments: Increased OEM focus on diversity following social justice movements has created new programs and opportunities
- Community-Focused Models: Growing consumer preference for businesses with strong community ties favors minority dealers with deep local connections
- Technology Partnerships: Companies like Google are partnering with NAMAD to provide digital tools and training
NAMAD's Strategic Initiatives for 2024-2025
As NAMAD continues to evolve under new leadership, several key initiatives are driving the organization's impact:
The NAMAD Diversity Difference Campaign
Launching in 2024, this campaign showcases the remarkable success stories of minority dealers, demonstrating the business case for diversity through real-world examples of achievement and community impact.
Technology and Innovation Partnerships
NAMAD has formed strategic partnerships with technology leaders like Google to ensure minority dealers have access to cutting-edge digital tools and training. These partnerships help level the playing field in an increasingly digital marketplace.
NextGen Leadership Expansion
The NextGen program continues to grow, with enhanced focus on preparing second-generation dealers and developing management talent within minority-owned dealerships. The program now includes specialized tracks for different career paths within automotive retail.
Financial Literacy and Capital Access Programs
New initiatives focus on improving financial literacy among aspiring dealers and creating innovative financing structures to overcome traditional capital barriers.
Willowood Ventures: Your Partner in Dealership Success
At Willowood Ventures, we're proud to stand alongside NAMAD in supporting the growth and success of minority auto dealers. Our founder, Dominic Scruggs, brings firsthand experience as both a NAMAD member and a Minority Dealer Candidate, providing unique insights into the challenges and opportunities facing today's minority dealers.
Our Comprehensive Service Suite:
Empowering Your Dealership Growth
- Facebook Sales Events: Leverage social media to expand your reach and drive measurable sales results
- Business Development Center (BDC) Services: Professional lead management and customer engagement solutions
- Targeted Email Campaigns: Build lasting customer relationships through strategic email marketing
- Buyback Sales Events: Optimize inventory while creating sales opportunities
- Strategic Consulting: Personalized guidance to optimize operations and enhance profitability
Ready to accelerate your dealership's growth?
Get Started Now Call 833-735-5998Looking Ahead: NAMAD 2025 and Beyond
NAMAD 2025 45TH Annual Membership Meeting
Join Us at NAMAD 2025 - The 45th Annual Membership Meeting
Mark your calendars for the automotive industry's most important diversity event! The NAMAD 2025 45th Annual Membership Meeting will be held at the legendary Wynn Las Vegas from August 26-29, 2025. This milestone gathering promises to be one for the books, featuring:
- Cutting-edge insights from industry leaders and innovators
- Exclusive networking opportunities with OEM executives and decision-makers
- Educational sessions on EV transition strategies and digital transformation
- The latest in dealership technology and operational excellence
- Celebration of 45 years of progress and achievement
Click here to register for NAMAD 2025!
The Road to Equity: A Collective Journey
The pursuit of true diversity and inclusion within the automotive industry requires sustained commitment from all stakeholders. While organizations like NAMAD provide essential advocacy, resources, and community, success ultimately depends on collective action from manufacturers, financial institutions, policymakers, and dealers themselves.
As Perry Watson IV emphasizes, "There's one thing to say that you value diversity, equity, and inclusion. Minority consumers, in particular, are walking in saying 'Okay, do I see myself in management there? Do I see myself at the executive level there?' They'd rather see a sermon than hear a sermon."
Key Actions for Industry Progress:
- Manufacturers: Continue expanding diversity programs and creating clear pathways to ownership
- Financial Institutions: Develop innovative financing solutions that address unique challenges faced by first-generation dealers
- Established Dealers: Mentor aspiring minority dealers and support succession planning
- Industry Partners: Invest in programs that build capacity and capability within minority-owned dealerships
- Communities: Support local minority-owned dealerships through patronage and advocacy
Resources and Support
For those interested in learning more about NAMAD and opportunities in automotive retail, here are valuable resources:
NAMAD Resources:
- Official Website: www.namad.org
- Membership Information: NAMAD Membership Portal
- Annual Conference Registration: NAMAD 2025 Registration
- Contact: 9475 Lottsford Road, Largo, MD 20774 | (301) 306-1614
Manufacturer Diversity Programs:
Willowood Ventures Services:
Conclusion: Driving Toward a More Inclusive Future
The journey toward true diversity and inclusion in the automotive industry continues to evolve, with NAMAD leading the charge for over four decades. From Homer B. Roberts' pioneering dealership in 1923 to today's growing network of over 1,476 minority-owned stores, the progress is undeniable—yet the work continues.
As we look toward 2025 and beyond, the convergence of demographic shifts, technological transformation, and renewed commitment to diversity creates an unprecedented opportunity for growth. The "Future Majority" isn't just a distant concept—it's rapidly becoming reality, and the automotive industry must evolve to meet this changing landscape.
At Willowood Ventures, we're committed to being part of this transformation. Whether you're an established dealer looking to optimize operations, an aspiring dealer preparing for ownership, or a manufacturer seeking to strengthen diversity initiatives, we're here to help drive success.
Ready to Transform Your Dealership?
Join the growing network of successful minority dealers who are shaping the future of automotive retail. Let Willowood Ventures help you achieve your goals with proven strategies and dedicated support.
Start Your Application Call Us: 833-735-5998 Contact Our Team
Together, we're not just building businesses—we're building a more diverse, inclusive, and prosperous automotive industry for all. The road ahead is full of opportunity, and with organizations like NAMAD and partners like Willowood Ventures, minority dealers have the support, resources, and community needed to succeed.
NAMAD: Frequently Asked Questions About Minority Auto Dealerships
What is NAMAD?
NAMAD stands for the National Association of Minority Automobile Dealers. Founded in 1980, it advocates for diversity and inclusion in the automotive industry. NAMAD works with policymakers and manufacturers to promote fair business practices for minority entrepreneurs and employees.
What is NAMAD's mission?
NAMAD's mission is to increase the presence of minority-owned dealerships and promote diversity across the automotive sector. This includes advocating for workplace diversity, supplier diversity, and expanding minority ownership of dealerships across America.
Why is NAMAD's work important?
The automotive industry is a major part of the U.S. economy. However, minority dealership ownership has lagged behind changing demographics. NAMAD's work is essential because minorities are projected to be the majority population in the U.S. by 2043, and their inclusion in the industry is essential for its future success.
Currently, minorities purchase over 40% of all new vehicles sold in the United States, yet minority-owned dealerships represent only about 5-6% of all dealerships, highlighting the need for more representation.
Who is the current leadership at NAMAD?
As of 2025, the leadership at NAMAD includes:
- Ray Fregia Jr. - Chairman, who assumed the role following Damon Lester's resignation. Fregia is a 30-year automotive veteran and owner of Courtesy Auto Group, which includes Courtesy Ford Lincoln in Danville, Illinois.
- Perry Watson IV - President of NAMAD, who oversees the organization's day-to-day operations and strategic initiatives.
- The Board of Directors includes representatives from various minority dealer associations, automotive manufacturers, and independent dealerships.
The organization maintains a succession planning protocol to ensure continuity in leadership and operations.
What are some of NAMAD's accomplishments?
Notable achievements by NAMAD include:
- Encouraging major manufacturers like General Motors to start minority dealer training programs.
- Securing minority representation on the National Automobile Dealer Association (NADA) Board of Directors.
- Promoting the creation of Minority Councils at automakers like Toyota and Jaguar.
- Growing the annual conference from 150 attendees to over 1,300, demonstrating increased industry engagement with diversity initiatives.
- Launching a leadership academy in partnership with Ally Financial to prepare the next generation of minority dealers.
What defines a minority-owned dealership?
Generally, a dealership is considered minority-owned if at least 51% of its ownership is held by individuals who are African American, Hispanic, Asian American, or Native American. NAMAD represents these dealerships in advocacy efforts.
How has the number of minority-owned car dealerships changed over time?
Since NAMAD formed, the number of minority-owned dealerships has grown but remains a small percentage of all U.S. dealerships. Currently, out of approximately 19,000 new car dealerships in the United States, less than 1,200 (about 5-6%) are owned by ethnic minorities.
The pace of growth has been slower than overall population changes, which is why NAMAD's continued advocacy is crucial for achieving representational parity in the industry.
What challenges have minority-owned dealerships faced?
Common challenges that NAMAD helps address include:
- Access to capital: Loans and financing can be harder for minority entrepreneurs to secure.
- Prime locations: Many minority-owned dealerships are placed in less profitable areas.
- Historical barriers: Discrimination and uneven treatment from manufacturers have limited opportunities.
- Succession planning: Many first-generation minority dealers face challenges in transitioning ownership to the next generation.
- Economic pressures: High interest rates and changing market conditions create additional challenges for minority dealers.
How has the market for minority dealerships changed over time?
Although challenges persist, awareness of the need for diversity has grown. Several manufacturers now work with NAMAD to offer programs that help minority dealer development, and shifting demographics make diversity a higher priority in the automotive industry.
There is increased recognition of the business case for diversity, as minorities now account for approximately 40% of all new vehicle purchases in the United States, representing a significant market segment that continues to grow.
What recent initiatives has NAMAD launched to promote growth in minority dealerships?
NAMAD has recently implemented several important initiatives:
- Leadership Academy: Partnering with Ally Financial, NAMAD has created a program to train and accredit aspiring dealers, preparing them for successful careers as business owners.
- NextGen Program: Focused on bringing the next generation of minority dealers into the industry, including the children of current dealers and young professionals.
- Annual Conference: NAMAD's annual meeting has grown to over 1,300 attendees, providing networking, education, and business opportunities.
- Advocacy Partnerships: Working with manufacturers and financial institutions to create stronger diversity programs and opportunities.
How does NAMAD address succession planning for minority dealerships?
NAMAD recognizes that many minority dealerships are first-generation businesses facing succession challenges. The organization has implemented strategies to address this issue:
- Educational programs that introduce dealer children to the automotive industry and its opportunities.
- Networking events to connect the next generation with current industry leaders.
- Training and mentorship opportunities for those who wish to take over family dealerships.
- Resources and guidance on succession planning, ownership transition, and business sustainability.
These efforts aim to ensure the continuity of minority-owned dealerships and build on the progress already made in the industry.
What financial resources are available for minority entrepreneurs looking to open a car dealership?
Entrepreneurs can explore Small Business Administration (SBA) loans, minority business grants, and manufacturer-backed programs. NAMAD also offers guidance on funding opportunities and financial planning for aspiring minority dealers.
Several automotive manufacturers have special programs designed to help qualified minority candidates enter dealership ownership, offering training, financing assistance, and ongoing support.
What role do minority-owned dealerships play in their local communities?
Minority-owned dealerships represented by NAMAD often play important roles in their communities. They offer jobs, support local events, and contribute to charitable causes. This community engagement can increase customer loyalty and a positive reputation.
Many minority dealers also serve as role models and mentors, demonstrating pathways to entrepreneurship and business success for others in their communities.
How can I support NAMAD's mission?
You can support NAMAD by:
- Becoming a NAMAD member if you're involved in the automotive sector.
- Attending conferences, workshops, and other events they host.
- Raising awareness about diversity in the automotive industry and backing efforts that promote minority dealership ownership.
- Supporting minority-owned dealerships in your community when purchasing vehicles or automotive services.
- If you work for a manufacturer or financial institution, advocating for stronger diversity initiatives and programs.
