Minority car dealer ranks grow

Ford Motor Co. CEO Jim Farley set a goal early in his tenure in late 2020 of adding 100 minority dealers to its retail base within five years.

The automaker got a third of the way to that target last year alone, helping the industry achieve its biggest gain in minority-owned dealerships since 2012.

Ford led the way with a net gain of 34 in 2021, according to the National Association of Minority Automobile Dealers. Overall, automakers added 109 last year, bringing the industry's minority dealer body to a total of 1,366, the most since 2006.

NAMAD President Damon Lester attributes the growth to automakers following through on the diversity commitments made in 2020 in response to the social justice movement after George Floyd's murder by a Minneapolis police officer.

"It was the first time in a very long time that manufacturers came out and made a commitment in writing to the world about their [diversity and inclusion] vision, what they believed in, what their goals were and what they wanted to achieve," Lester said.

"That helped us because most of the time we've seen commitments just written to us and not to the world, so that level of transparency really helped us in having a whole different level of accountability."

The 34-store increase for Ford in 2021 compares with a gain of just five a year earlier. It was four times more than Ford had added in any single previous year.

Ford entered 2022 with 194 minority dealers, which was third in the industry behind General Motors' 303 and Stellantis' 211. AV Fleming, executive director of the Ford Minority Dealers Association, said he wouldn't be surprised if the automaker topped its 2021 performance this year.

Ford had an established team committed to growing its minority dealer base, but having a directive come down from the CEO was critical, Fleming said. The new owners were a mix of experienced dealers who had other franchises and those getting their first opportunities.

"Having the commitment from the CEO gives the team that extra energy, or the extra boost to understand the importance of it," Fleming told Automotive News. "Having the minority portfolio has always been important, and then when the CEO adds to that as part of his aspirational goals to the company, I think that just gives the rest of his team more of a priority, if you will. I think it really moved the needle as we can see."

The industry total of 1,366 minority-owned rooftops remains well below the peak of 1,805 in 2005 but reflects a rebound of more than half from the 2011 trough of 875 in the wake of the Great Recession.

Stellantis had the biggest net gain after Ford in 2021, adding 28 minority-owned dealerships, followed by Toyota Motor Corp. with 13, General Motors with 12 and Jaguar-Land Rover with 11.

"We have built strategic partnerships with financial institutions, created allyship with automotive brokers and recruited high-performance dealers in addition to dealer candidates using nontraditional methods to yield our No. 2 industry ranking," said Wadette Bradford, manager of dealer network diversity and investment for Stellantis North America.

"Our goal is to be the No. 1 OEM of choice for minority dealers, and we continue to build on these facets for continued success."

Among minority groups, Asian-owned dealerships saw the most growth last year with 62, bumping the total to 361. The African American store count, after years of stagnation, rose by 27 to 292. Hispanic-owned stores were up 17 in 2021 to 591.

There was a net increase of two for Native American-owned dealerships.

NAMAD's Lester said some automakers have gotten creative to increase their minority dealer count. Honda, for example, has exercised the right of first refusal in some cases to get minority candidates into dealerships.

Lester, who became a dealer himself last year by buying Nissan of Bowie in Maryland, said minority candidates looking to own their first stores can't be too picky.

"You don't have an opportunity to cherry-pick your first opportunity," Lester said. "I've been told 'no' more than probably anyone in the world. So you just can't take the 'no' for granted. You have to stay true to what you believe and what you know that you can do."