Why Is The Auto Industry Losing Black Jaguar Dealers?

As gas prices continue to rise and the auto market continues to shift toward more fuel-efficient vehicles, there will be a fallout of dealers, specifically dealers of color. Many dealers have invested their sweat, blood and tears, building a legacy for their family.

However, as we find in a recent BlackEnterprise.com article, which compliments the BE 100 June edition, a former dealer, who was once responsible for helping other dealers drive toward their dream of owning a store, now finds himself without a dealership to leave to his children.

Like in the real estate industry, up until the recent downturn in the economy, owning a dealership has turned a number of successful dealers into millionaires. Why do you think Bob Johnson, founder of BET, invested in a stream of dealerships last year? Obviously, Johnson doesn't need the money. Yet, Johnson knows, with the proper management and hot products to sell, there is an opportunity to make a lot of money in the car business. See how one automaker's strategy drove most of their African American dealers out of business.