leadership team
Marisa Carnevale-Henderson
Market Executive
Dealer Financial Services
BankofAmerica
Jim Cockey
Market Executive
Dealer Financial Services
BankofAmerica
Derek Comestro
Market Executive
Dealer Financial Services
BankofAmerica
featured partner
Mitch Mitchell
Executive Director
Chrysler Minority
Dealers Association
introduction
The Chrysler Minority Dealers Association (CMDA) was established in
1986 to give voice to current minority dealers — and to aid those aspiring
to become dealers.
Supporting diversity also is a passion at BankofAmerica. The Bank’s
longstanding belief is that diversity and inclusion is not just the right thing
to do, but also a smart investment. Part of the Bank’s commitment includes
supporting and partnering with entities that foster diversity, like CMDA.
This report is a joint project of our two organizations, reflecting our shared
goal: bringing more awareness to the importance of minority management
and ownership within the dealership industry.
Associations like CMDA are the lifeblood of the minority dealer body. They
offer valuable networking opportunities, helping dealers or would-be dealers
develop the relationships needed to acquire and sustain franchises. They
provide educational experiences to assist business owners in developing and
honing their professional acumen. Lastly and most importantly, CMDA and
other minority dealer associations advocate for opportunities — with the
various OEMs, as well as with capital resource partners and legislative
groups at all levels.
With the demographics of our country changing rapidly, there never has
been a more important time to talk about the role of minority ownership
in the industry
. It’s imperative that dealer networks reflect those changing
demographics in order to optimize sales and business opportunities within
those communities.
This report is designed to continue the discussion, and to celebrate the
stories and the strength of the current minority dealers in our industry.
2
3
growing the minority dealer base
Today’s minority
retail auto market
Ken Thomas grew up in Detroit and started
his career as an auto mechanic; his first job
was at the dealership he now owns.
Trained as an optician in his native Argentina,
Gus Rodriguez immigrated to the U.S. and
took a job selling cars in Texas after positions
in the optical field dried up.
Shannon Inukai-Cuffee is a second-generation
dealer; her father was born in a Japanese-
American internment camp in California.
Jay Rivchin came to Miami and the industry
straight from South Korea—while Jay Gill
moved into the business after a career in
Silicon Valley.
These five entrepreneurs represent the broad
diversity of the minority dealer body in the
U.S. auto retailing industry.
U.S. auto dealers
1,10 0 Minority-owned
18,000 Total
Source: National Association of Minority Automobile Dealers.
Although in the 1970s auto manufacturers
implemented programs to increase the
number of minority dealers in the country —
at that time, largely in African-American
communities — those efforts have dwindled.
The industry increasingly has welcomed
different ethnicities, especially dealers of
LatinX and Asian descent, but the number of
minority-owned stores overall has decreased
dramatically since its peak in 2005. Today, of
the approximately 18,000 dealerships in the
U.S., only about 1,100, or 6%, are minority-
owned, reports the National Association of
Minority Automobile Dealers.
But many current dealers and industry
executives say there has never been a more
important time to embrace diversity at
dealerships.
According to the U.S. Census Bureau’s latest
data, four in 10 Americans identify their
ethnic background as something other than
white — and the numbers are even more
dramatic among younger people. The Census
Bureau says just under half of those 16 years
and younger identify themselves as white.
Trends show the U.S. is headed toward a future
as a majority-minority country by mid-century.
“ I’m a big believer in putting
the right ethnicity in the right
market. There are plenty of
people who connect with me
and buy from me because
I’m Indian. I think the
manufacturers are realizing
that also.”
Jay Gill
President
Gill Automotive Group
Fresno, California
growing the minority dealer base
4
today’s minority retail auto market
“Manufacturers recognize
the importance of having
these dealers within
their network because
they recognize the
importance of serving
the communities those
dealers come from.
These dealers serve as
optimal representatives
in those communities.”
Mitch Mitchell
Executive Director
Chrysler Minority
Dealers Association
“This country is a melting pot; 30% of our
consumer base are minorities. Yet less than
10% of our dealer body is minority,” says Jay
Gill, a dealer of Indian descent and president
of Gill Automotive Group in Fresno, California.
“That equilibrium needs to be adjusted. I’m
a big believer in putting the right ethnicity
in the right market.
There are plenty of
people who connect with me and buy from me
because I’m Indian. I think the manufacturers
are realizing that also.”
Rodriguez, dealer principal of Dodge City of
McKinney, says his store has a big database
and loyal customers in his Texas market. “Your
name is on the dealership, they see what you
do and how you are involved in the community.
Whether they speak Spanish, or are African-
American, they want to come to a minority
dealership.”
Mitch Mitchell, executive director of the
Chrysler Minority Dealers Association, says,
“Manufacturers recognize the importance
of having these dealers within their network
because they recognize the importance
of serving the communities those dealers
come from. These dealers serve as optimal
representatives in those communities. The
OEM, of course, doesn’t sell a single car; they
benefit from the perspective of dealers who
are familiar with these diverse communities,
in designing vehicles and programs for these
customers.” But Mitchell says any OEM efforts
on behalf of minority dealers should not be
viewed as a charitable or feel-good effort.
“Overall, minority-owned businesses fare just
as well if not better than a majority-owned
dealership, and especially in those ethnic
communities,” he says. “It benefits the OEM
and the dealer to be in the community, from a
business standpoint.”
Derek Comestro, BankofAmerica Dealer
Financial Services Market Executive, says
representation of ethnic minorities — and
women as well — in dealership ownership,
management and public-facing roles is
especially important as the industry’s
consumer base changes.
“It feels obvious: As
a business, you want your franchises and
your team to match your client base. There
will be a 50% minority population in this
country soon, and business needs to reflect
that,”
he says.
Gill joined the dealership industry 25 years
ago when he opened a used-car lot in
Fresno, California. “I don’t know if it’s easier
or harder to be a minority dealer today, but
it’s different,” he says. “There are different
challenges in the market today.” Thirty years
ago, when OEMs were more actively pursuing
minority owners, he says, “If you had a little
money, you could get a point. Manufacturers
were doing it for that check mark. But now it’s
changed.”
On the positive side, Gill says, “
There are
more dealers out there who have paved the
path — more minorities, even than there
were 25 years ago.”
From Ken Thomas’s perspective, being a
dealer in general is simply more difficult today,
whether that dealer is a minority or not. “It’s
a challenging market no matter how we look
at it,” he says. “Now especially there is a lot of
uncertainty.”
Some of the responsibility for maintaining
and growing the minority dealer base lies with
current dealers, he says. “I think there may
be more opportunities for minority dealers
opening up, but we have to be ready for
those new stores, and that means having the
right people in order to handle an expansion,”
Thomas says. “I’m trying to focus on keeping
costs down and sales up and trying to build
the people I have to be good managers —
and create more opportunities for them.”
growing the minority dealer base
5
Issues and
concerns
for women
“ It has been hard at times.
As a woman, you have to
work twice as hard, always
feeling that you have to
prove yourself. There can
be a lot of dry spells as a
woman when you aren’t
getting feedback from
others that you know what
you’re doing.”
Shannon Inukai-Cuffee
President
Dick’s Auto Sales
Hillsboro, Oregon
Although technically a majority — nearly 51%
— of the U.S. population, women are dramatically
underrepresented in the dealership industry. Less
than 20% of all dealership employees overall are
women, NADA reports — and less than 2% of
technicians.
Although many meet the same sorts
of obstacles confronted by ethnic minorities,
women also face unique challenges in the
industry. Looking back over her career, Shannon
Inukai-Cuffee says, “It has been hard at times. As
a woman, you have to work twice as hard, always
feeling that you have to prove yourself. There can
be a lot of dry spells as a woman when you aren’t
getting feedback from others that you know what
you’re doing.”
It doesn’t necessarily get easier being the boss,
either, she says. A second-generation dealer who
still is in partnership with her brother, Inukai-
Cuffee says: “Being the boss’ daughter, a female,
and a minority, you always feel you have to work
harder. There were always lots of education
opportunities available — 20 groups, NADA Dealer
Academy, OEM training — and I gobbled that up.”
Has she seen it get easier over the course of her
career? “I don’t know that I’d say yes. I don’t think
it’s getting any easier but maybe it’s not getting
harder,” she says. “It’s status quo. We haven’t
moved the needle enough.” She says at industry
conferences like NADA, there are more meetings
and topics centered around opportunities for
women. “But we have to participate. As women
we have to engage and lean into that,” she says.
The industry’s reputation as a male-dominated
business and its historically long hours and
weekend work deter many women from even
Female representation
in the auto market
<2% of technicians
<20% of U.S. dealership employees
Source: NADA.
considering a job at a dealership. Dealer Ken
Thomas says, “My biggest struggle is finding
women. Finding female managers, even female
salespeople, is a challenge.” He has recruited at
local automotive programs, and says, “Out of 30
kids, maybe you’d see one woman in the class. We
have to do a better job of presenting the career
opportunities to them — how much they could
earn and grow if they get into this business.”
His dealership’s top salesperson, he says, is a
veteran woman, and he continues to look for
more women to hire. “It’s just good business,”
he says. “Women who do business with us want
to do business with women as well. Even if they
choose to deal with a male salesperson, they
want to see there are women here.”
But Thomas acknowledges the challenges.
“My facility is 60 years old. If I do hire a female
technician, I don’t even have a place for them to
change clothes. The infrastructure is not even
there to bring a female tech into the business
in most places. So in order to create those
opportunities, I have to prepare, too.”
5
growing the minority dealer base
6
Tips for success
Acquiring and operating an auto dealership
is an exciting but demanding proposition for
anyone. But women, blacks, immigrants and
other ethnic minorities often face additional
challenges: cultural biases, a smaller network
of partner and financing options and a lack of
access to capital.
How can an ambitious person plan ahead for a
future as an auto dealer? Successful minority
dealers and industry experts offer suggestions
for industry executives interested in preparing
for a future as a dealer/principal.
Learn from the best: Derek Comestro
of BankofAmerica says, “The best thing
an ambitious person can do is start with a
dealership or group that, first, believes in
the values of diversity and inclusion. Find a
business that also already has a very well-run
process and learn from the best. If it doesn’t
fit those criteria, find one that does.”
Build a strong foundation: Dealer and
entrepreneur Jay Gill mentors many employees
and young people interested in a dealership
career. He says, “The first thing I tell them is:
Don’t be a jumper. The car business is feast or
famine — and a lot of young people may make
good money, then have a bad month or year,
and jump to another dealership. The advice
I give them is to build a strong foundation:
Find a place, a home, and stick there. Over the
long haul, you’ll come out better and stronger,
rather than going from place to place.” He
does say it’s important to find someone
you feel comfortable with, but once that
relationship is established, “stick with that
person and build that foundation before you
do anything else.”
Develop a broad skill set: Oregon dealer
Shannon Inukai-Cuffee says it’s important
for younger executives to take advantage
of every opportunity to grow and to learn
new skills and departments. “We don’t have
enough good people who want to take
advantage of opportunities,” she says. “We
have great opportunities in our own auto
group. We’re more than happy to support
younger people. But it’s about raising your
hand.” Comestro echoes that thought: “Don’t
skip steps. If you want to rise in management,
spend time learning about all the dealership
profit centers — service and parts, F&I,
accounting — and not just the front end.”
Start saving now: Ken Thomas climbed
through the management ranks and then
finally had the opportunity to acquire a
dealership with a partner three years ago.
Thomas says, “I think the most important
thing might be to make sure you’re putting
your money away. Obviously, you want to gain
as much knowledge as you can and take every
challenge that’s put in front of you. But you
have to have money. For me to get
“ Don’t put the money before
the feeling. If someone
comes to me talking about
how much money they want
to make in this business — I
know it’s not the right person.
If you’re here for the money,
it’s too hard. You have to have
the desire and the passion
for the business in order to
succeed.”
Gus Rodriguez
Dealer Principal
Dodge City of McKinney
McKinney, Texas
growing the minority dealer base
7
Minority dealers face
unique challenges
Fewer financing
ons
nsufficient
apital access
Cultural
Small
netwo
opti
I
c
biases
er partner
rk
into this, I had to leverage my 401k. There’s
opportunities out there, but if you don’t have
enough money, it’s not going to happen for
you.” Comestro says, “Save as much money as
possible so that when the time comes, you’ll
have skin in the game.
Get an understanding of capital and how
it works: It’s not only important to have the
funds to invest in a dealership opportunity;
it’s critical to have a basic understanding
of business and finance. Dealer Jay Rivchin
says, “In today’s world, you have to learn
how the money works. You have to learn
how you control expenses, where money
goes and comes on a daily basis. And how
to keep growing your cash capital. Utilize
every technology or software, and surround
yourself with people who can keep up with
the information — so at any given moment,
your general manager can tell you where the
dealership is at.”
Seek out a partner: Comestro says the right
partner can help a prospective dealer realize
their dreams. “If you do have ownership
aspirations, try to create a transition buyout
plan with your existing owner. If that is not
available, try to partner with a silent investor,
or another individual who can help with the
capital but let you run your business,” he says.
OEMs, lenders and buy-sell brokers can often
help identify potential partners who have a
desire to grow their current dealer business,
or an outside party looking to enter or deploy
capital in the industry.
Solicit legal advice: “If you do enter into
any deal, including a transition buyout plan,
make sure you get good sound legal advice,”
Comestro says. Don’t rely on the other
party’s attorney. He suggests that industry
associations might be a starting point to help
find resources.
Learn from each other: Rivchin recommends
becoming a student of the business, as deeply
and broadly as possible. “When you go back
to the store, check each department, and
learn what you’re doing on all fronts,” he says.
“Open the books and look at the daily report.
Then go to the store your friend manages or
owns as a minority dealer, and spend three
days or a week there. Learn what they do.
Learn from each other.”
Become an active member of industry
associations: CMDA, other OEM-specific
dealer associations, the National Association
of Minority Automobile Dealers and other
industry groups provide opportunities to
network: to meet established dealers, or
executives aspiring to become dealers, as well
as contacts at OEMs, lending organizations
and other vendors. These contacts can open
doors to mentorships, partnerships and other
learning opportunities. “Associations are super
important and always have been,” Comestro
says. “In terms of providing advice, being a
champion, and helping build networks among
members, associations can play a huge role in
helping a dealer achieve success.”
Follow your passion: Finally, dealer Gus
Rodriguez says, “Don’t put the money before
the feeling. If someone comes to me talking
about how much money they want to make
in this business — I know it’s not the right
person. If you’re here for the money, it’s too
hard. You have to have the desire and the
passion for the business in order to succeed.”
tips for success
Detailing checklist
Minority dealers and industry experts
offer advice to aspiring dealers
Build a strong foundation
Develop a broad skill set
Start saving now
Learn how capital works
Seek out a partner
Solicit legal advice
Learn from each other
Join industry associations
Follow your passion
growing the minority dealer base
8
Future of the
minority dealer base
Today’s group of successful
minority auto dealers have
worked hard and created a path
for others to follow in their wake.
These dealers say it’s important
to keep women and ethnic
minorities represented
in the auto retailing industry,
but express concerns about
the future.
Jay Gill
Jay Gill calls himself an “unconventional guy.”
After graduating with an engineering degree
from Fresno State University, Gill went to
work in Silicon Valley — where, he says, “I felt
all we did was have meetings. I wanted to do
my own thing.” A Californian whose family
is from India, he wrote a business plan and
received a $200,000 loan from the Small
Business Administration, using that to purchase
property for a used-car lot in Fresno. He opened
on New Year’s Day of 1996 and the rest is
history. Recognized in the media as a leading
entrepreneur and “blue-collar millionaire,”
today Gill operates 10 new-car dealerships,
representing 13 brands, in California and Hawaii,
as well as a hotel and an almond farm.
"Economically, it’s going to be challenging. It
takes a lot of capital to operate a dealership,
and that’s one of the things most affecting
minority dealers. When we have an economic
downturn, most of us don’t have that
backstop, like some of the dealers out there
who are part of second- or third-generation
dealership families."
Shannon
Inukai-Cuffee
Shannon Inukai-Cuffee’s great-grandparents
immigrated from Japan. Her father, born in a
World War II Japanese-American internment
camp, grew up working around the family’s gas
station, and opened his first dealership when
he was 30. Even after working at her father’s
dealership when she was young, Inukai-Cuffee
says, “I wasn’t sure if the car business was for
me.” But finding herself a single mom with a
daughter to support, she decided to jump back
into the dealership business; she attended
NADA Academy, becoming service manager
at Dick’s, then general manager. When their
father passed away 10 years ago, she and her
brother took over the business, and as co-
presidents share management duties at their
four dealerships.
"We try to give other minorities opportunities
in our businesses. But it feels a bit like we
might be a dying breed… If we don’t do more
as an industry, we certainly aren’t going to
have more diversity. We are going to continue
with the trend of these bigger groups getting
bigger, as we have seen over the past 20
years. In order to stay competitive and
profitable, because the landscape has shifted,
you have to have this scale and volume;
dealer groups have to get bigger and bigger.
That trend can be detrimental to growing the
minority dealer body; it takes a lot of cash
to run just one dealership… If there are not
specific programs where manufacturers are
supporting the minority dealer community,
for instance by bringing buyers to dealers
who might want to sell… I think it’s going to
be challenging."
Jay Rivchin
When Jay Rivchin immigrated from Seoul, South
Korea, to the Miami area, he says, “It was eye-
opening. There were beautiful giant muscle
cars, fast cars. And I found that if you worked
for a car dealership, they gave you a car to
drive.” He started as a salesperson at Dadeland
in 1979, rising to general sales manager. After
a brief stint at another dealership, he came
back to Dadeland as GM and part-owner, and
took full ownership in 2002. Today he has two
9
dealerships on Florida’s fabled highway U.S. 1
and a third store in the Homestead area. “Only
in America,” the gregarious Rivchin says,“can this
happen to someone like me.”
“I’m worried about it — because we are not
working together as senior leaders of minority
dealers to set the path for the next 10, 15 or
20 years. A lot of us are getting old fast. I’m
concerned that we need to come together.
Just like any successful car dealership, we
need to sit down, come out with our business
plan — and stick with the plan.”
Gus Rodriguez
Gus Rodriguez studied to be an optician in his
native Argentina. After moving to the U.S. in
the 1970s, he found himself without a job in
the rapidly changing retail eye-care industry.
Someone suggested a job selling cars; in
his first month, Rodriguez was salesman of
the month. He moved to Texas in 1989 and
served as dealership general manager for 16
years. In 2005, with the help of the Chrysler
Market Investment Program — and after selling
his cars and mortgaging his house for the
capital — he purchased a dealership that was
losing money, and turned it around in the first
year. His daughter, Augie, today serves as his
general manager. “We have been together, as a
family, for more than 25 years,” he says of his
dealership staff.
“There is an opportunity out there. There is
a new generation of people in the minority
dealer community, who know others who
have been involved in the car business. That
new generation can take the torch from us
and run with it and make it better. One of
the mistakes a lot of minority dealers make
is they don’t give the opportunity to their
own kids. I used to hear, 'I don’t want my
kids in the business, it’s too hard. Let them
be a doctor or lawyer.’ I say, let your kids do
whatever they want to do. And I think we’re
going to see in the next 10 years, different
minorities come to the car business and add
to the dealer body.”
Ken Thomas
Growing up in Detroit, Ken Thomas thought
working on cars would be his dream job.
At 18, he started at a local dealership as a
mechanic — but found he didn’t love being an
auto tech. “I knew I liked cars, but didn’t know
what part of the business I wanted to be in,”
he says. After also being a service advisor, he
moved into a sales position. Finally, he says, “I
enjoyed and excelled at it.” He left for another
Detroit-area Chrysler dealership, where he spent
25 years, eventually being elevated to general
manager. Three years ago, after looking for
a store, he and two partners finally had the
opportunity to purchase Northland CDJR — the
dealership where he started his career. After
taking over and revamping the approach at what
had become a neglected store, Thomas and his
staff tripled the business in their first full year.
“I don’t think [the minority dealer body] is
going to stay stable. Right now there are too
many corporate-owned stores coming in and
offering crazy money to buy out dealers. Just
in the Detroit market, in the past year or so
I’ve watched six different fire sales happen.
Big name groups are able to gobble up stores,
and pay brain-damaging prices to get them.
It’s often not even a realistic number that
we’re seeing. Recently a dealership went
for $100 million. Who can pay that? What
minority owner can pay that? And on the
other hand, who can say no?”
future of the minority dealer base
Jay Gill
President
Gill Automotive Group
Fresno, California
Shannon Inukai-Cuffee
President
Dick’s Auto Sales
Hillsboro, Oregon
Jay Rivchin
Dealer Principal
Dadeland Chrysler Jeep Dodge Ram
and South Miami Alfa Romeo Fiat
Miami, Florida
Gus Rodriguez
Dealer Principal
Dodge City of McKinney
McKinney, Texas
Ken Thomas
Operating Partner
Northland Chrysler Dodge Jeep Ram
Oak Park, Michigan
9
growing the minority dealer base
growing the minority dealer base
10
10
Next steps:
Keeping and
strengthening
the dealer base
So what’s next? As current minority dealers,
industry executives, OEMs and partner
organizations like BankofAmerica assess
the landscape and the future of the minority
dealer base, they believe each group of
stakeholders — current dealers, OEMs and
younger executives — has a role to play in
strengthening and expanding the minority
dealer base.
What dealers can do: “
The U.S. population
is changing. About 38% of the population
are minorities, buying vehicles from us. But
only 6% of dealerships are minority-owned.
The math doesn’t work,
” says Jay Rivchin.
“But if we complain about it as minority
dealers, then we have to be willing to put
some time in to grow the next generation of
minority dealers.”
Current dealers can help expand the talent
pool, so that as opportunities become
available, there are trained, experienced
minority executives ready to step in. Ken
Thomas remembers being at industry
conferences where he was the only black
executive in the room. He says, “If I was
the only minority in the room, of all the
sales managers and general managers at a
conference, that means there would only be
an opportunity thrown out for one person.
Our first priority is making sure we have
capable, competent management in those
rooms, to build a case for why there should
be more minority dealers. There have to be
people ready to and capable of stepping into
those ownership positions. That’s our first
responsibility.”
How to build the
minority dealer base
What dealers can do:
• Expand the talent pool
• Plan for succession
• Retain minority ownership
• Create capital pools
What OEMs can do:
• Recruit minority employees
• Support minority dealers
• Encourage candidate mentoring
What executives and
future dealers can do:
• Save money
• Identify capital sources
• Seek out mentors
• Participate in industry groups
• Learn business fundamentals
growing the minority dealer base
11
“As a minority dealer, if
you’re going to sell, you
should approach another
minority dealer to sell. A lot
believe that if they sell to a
majority dealer they’re going
to get more money. I’m not
sure that’s true anymore.”
Jay Rivchin
Dealer Principal
Dadeland Chrysler Jeep Dodge Ram
and South Miami Alfa Romeo Fiat
Miami, Florida
Mitch Mitchell says developing the future
talent pool means more than just providing
jobs at the dealership. “Dealers need to
cultivate the next group that’s coming up — as
businesspeople,” he says. “They need to make
certain they have minority members in the
management team, in important meetings, so
they gain an understanding of what it takes
to run a business. A lot of our candidates
understand how to sell cars, and run a retail
auto operation, but don’t understand how to
run a business.”
Developing the talent pool also supports
current dealers who want to expand their
businesses.
“My problem is talent,” Jay Gill
says.
“We need to build that bench, develop
that bench, train that bench.
As a senior
dealer, if I’m going to grow my enterprise, and
scale it, I need those guys. What I want to do
with these guys is to partner with them: put
them through the development process, find a
deal, become their partner, mentor them and
then let them buy me out at some point. We
want to develop these young kids, hold their
hands in the process, then eventually let them
fly on their own.”
Mitchell also says not enough dealers are
working to transition their businesses to
the next generation — whether that’s their
children or other trusted employees.
“A lot of
it is about succession planning and staying
around long enough to see that through,”
he
says. “That’s the strongest way we continue,
through succession planning. It’s so expensive
to get a franchise these days; it’s easier to
inherit or buy into a family dealership.”
Some successful dealers, like Gus Rodriguez,
are preparing their children to take over their
dealerships. Shannon Inukai-Cuffee and her
brother took over the family dealership from
their father. But other dealers say they want
their children to make their own decisions. Jay
Rivchin, who has four children, says, “If they
want it, they have to come to me. I’ve learned
that if I push too hard, I push them away.”
Some dealers also believe current minority
dealers ready to sell bear a responsibility to at
least try to keep their stores minority-owned.
“As a minority dealer, if you’re going to
sell, you should approach another minority
dealer to sell,”
Rivchin says. “A lot believe that
if they sell to a majority dealer they’re going
to get more money. I’m not sure that’s true
anymore. But we lose some of these stores
because we don’t stick together as minority
to minority. For a lot of guys, if none of their
kids want to get into business, they end up
selling to big groups rather than looking for
a successful minority dealer.” Rivchin thinks
the situation could be helped by bringing the
minority dealer community together with
more seminars and discussions with financial
experts (buy-sell brokers, financial advisors) to
“open their minds.”
Mitchell agrees, and takes it one step further.
“We have to do a better job in terms of finding
or creating the capital vehicles that will invest
in us and with us. It takes a lot of money to
do this. One option would be dealers getting
together, perhaps to create a venture capital
fund, or having banking partners that have
a pot of funds for specific investments in
minority dealerships or startups. Some of the
burden is on us to create those vehicles for
potential candidates.”
What OEMs can do: OEMs’ commitment to
their minority dealers, and especially proactive
programs to recruit and support new minority
and women dealers, has waxed and waned
over the years, current dealers say. For the
greatest impact, Rivchin says, the efforts have
to start at the top. “If the OEMs don’t make a
commitment from the chairman or board level,
if they don’t believe in the minority dealer
next steps: keeping and strengthening the dealer base
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next steps: keeping and strengthening the dealer base
body, and filter that down to the presidents,
VPs, and regional managers, it’s not going to
work. There has to be a commitment from the
very top, and accountability down.”
Mitchell says, “This is a relationship business,
and the OEMs can do a better job from
the standpoint of creating and maintaining
relationships with their minority dealers, and
potential minority dealers.” That includes field
staff taking the time, on a regular basis, to get
to know current dealers, he says.
Thomas says some OEM programs can
feel more like publicity efforts than robust
recruitment and development. “Do they have
an honest outreach program with a true
minority development program?
That’s got to fall on the manufacturers,” he
says. “Yes, the dealer has to have someone in
place that is capable of stepping into those
positions, but the manufacturers have to
take that next step with them — to get them
through NADA Academy, or training programs
like the one that Chrysler put us through. Right
now that’s not necessarily there for most of
the manufacturers.”
Comestro says OEMs and their partners
typically have sound minority training and
development programs for GMs and owners;
however, there seems to be significant
opportunity in identifying up-and-coming
talent and matching them with minority
dealers who can serve as mentors earlier on
in the process.
What interested executives — future
dealer candidates — can do: Finally,
younger executives interested in a future
as an auto dealer “have to get ready for the
opportunities,” Mitchell says. “If you have
the opportunity but if you’re not prepared,
it doesn’t mean anything. You have to be
intentional about wanting that opportunity,
from an early point in your career.” That
includes saving money, identifying capital
sources and seeking out mentors, he
says — plus “getting involved in organizations
such as ours, to talk to people to understand
what’s involved in being a dealer.”
It also means seeking out learning
opportunities.
“Most dealers come from the
front of the store. But to be a successful
dealer you need to understand financial
statements, cash flow, leadership,
personnel development, real estate, leases
and contracts,”
he says. “Those are owner
characteristics you don’t get from being a
sales manager.”
“ If I was the only minority
in the room, of all the sales
managers and general
managers at a conference,
that means there would only
be an opportunity thrown
out for one person. Our first
priority is making sure we
have capable, competent
management in those
rooms, to build a case for
why there should be more
minority dealers."
Ken Thomas
Operating Partner
Northland Chrysler Dodge Jeep Ram
Oak Park, Michigan
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