Five Years Later: The Changing Face of Minority Dealers

	African Americans			Hispanics
	2008	2003		2008	2003
Lexus	11	10	10%	8	2	300%
Hyundai	11	8	38%	22	24	-8%
SmartCar**	1		100%	4		100%
Mercedes Benz	8	4	100%	8	2	300%
MINI	2	2	0%	3	3	0%
BMW	9	8	13%	4	7	-43%
Ford***	117	252	-54%	89	112	-21%
Toyota	14	20	-30%	26	15	73%
Nissan/Infiniti	27	21	29%	25	16	56%
Audi	4	0	100%	2	2	0%
Acura	6	3	100%	1	1	0%
Porsche	3	1	200%	4	1	300%
Chrysler	46	50	-8%	67	49	37%
Jaguar	2	3	-33%	5	4	25%
Honda	10	14	-29%	16	12	33%
Mitsubishi	4	4	0%	5	14	-64%
Subaru	6	5	20%	13	13	0%
Kia	4	8	-50%	12	16	-25%
Volkswagen	5	6	-17%	14	12	17%
LandRover	1	1	0%	4	3	33%
General Motors	48	102	-53%	98	172	-43%
Mazda	6	9	-33%	9	8	13%
Total	345	531	-35%	439	488	-10%
LEGEND:
SmartCar** arrived in 2008.
Ford*** includes Ford, Lincoln, Mercury and Volvo.
Source:NAMAD
Prepared By:JeffCars.com

In 2003, NAMAD (The National Association of Minority Automobile Dealers) implemented its Fifteen Percent Initiative, when brighter days were ahead for the auto industry. This initiative required that, across the board, manufacturers increase the percentage of majority ownership of new-car dealerships by ethnic minorities from its paltry level of a little less than 5 percent to a minimum of 15 percent, which is a closer representation of the American minority population.

Ironically, five years later, with the fallout of new-vehicle sales and the restructuring of the Detroit-based automakers due to the bankruptcies, the goal of NAMAD is no longer to achieve the Fifteen Percent Initiative. In fact, minorities continue to own approximately 5 percent of all of the new-vehicle dealerships through 2008.

Surprisingly, at the time NAMAD implemented the Fifteen Percent Initiative, African Americans owned 531 new-car dealerships, while Hispanics only owned 488 stores. Conversely, five years later, the table has turned. African Americans and Hispanics have shed 186 and 47 new-car dealerships, respectively over a five-year period. Hispanics are now in the driver's seat, owning more stores than African Americans despite a decline in total dealerships for all groups.

Unfortunately, the numbers are expected to continue in reverse, as a result of the soft economy, causing more stores to close due to lagging car sales and the inability of dealers (and customers) to secure financing. Just wondering: Since its inception in the eighties, African American have always served as chairman of the board of NAMAD. Is the recent shift in numbers the reason the organization will have its first Hispanic chairman in 2010? Will there be a new generation of African American dealers? Will the imports recruit more African American new-car dealers?

And, to get a better understanding of some of the fallout occurring with minority dealers, click here to peruse this story.