What is NAMAD and How Can It Help Minority Auto Dealers?
The automotive industry is a powerhouse of the American economy, driving job creation, innovation, and economic growth. Yet, the path to success for minority entrepreneurs and professionals in this sector hasn’t always been smooth. The National Association of Minority Automobile Dealers (NAMAD) is a guiding force, championing greater diversity and inclusivity throughout the automotive industry.
As a minority-owned business, Willowood Ventures understands firsthand the hurdles and opportunities faced by minorities in the automotive world. This guide dives deep into what NAMAD is, its historical impact, its mission, and the ways it helps both aspiring and established minority auto dealers thrive in this dynamic industry. NAMAD 2024 in Miami is it’s annual conference it is being held in Miami. Many of these topics will be discussed in detail there!
A Historical Look at NAMAD and Its Impact
Since its founding in 1980, NAMAD has been a tireless advocate for diversity in the automotive industry. Their mission: to level the playing field and ensure everyone has a fair shot at success. This commitment has fostered industry growth and allowed more minority-owned dealerships to flourish.
NAMAD’s influence extends to working with both lawmakers and car manufacturers to create more opportunities for minority groups in retail and service, ensuring their rightful place in the industry.
Their dedication to supporting African American and other minority-owned businesses is evident in events like the upcoming 44th Annual Membership Meeting, taking place August 20-23, 2024, at the Fontainebleau Miami Beach. NAMAD 2024 promises to be an impactful gathering where minority dealers can connect, learn, and grow.
Despite the challenges, NAMAD has achieved significant milestones. It stands as a powerful voice for minority dealers, tirelessly advocating for their deserved opportunities within the automotive world.
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NAMAD’s Mission and Purpose: Driving Diversity Forward
NAMAD’s core objective is to ensure a substantial and meaningful presence of minority businesses and employees across all sectors of the automotive economy. This encompasses:
- Boosting the number of minority-owned dealerships across the US
- Promoting workplace and supplier diversity within automotive manufacturing
- Supporting minority participation in the retail sales and service aspects of the automotive industry
The organization is dedicated to building strategic alliances and advocating for policies and practices that prioritize diversity and economic equity across all facets of the American automotive industry.
The Reality of Minority Representation in Auto Dealerships
While strides have been made, the representation of minorities in auto dealerships hasn’t fully caught up with the evolving demographics and consumer trends in America. The following statistics highlight this disparity:
- 32% of all new vehicles are purchased by minorities.
- Only 6% of American automotive dealerships are minority-owned.
- 95% of minority dealers are first-generation owners.
- The growth of minority dealerships hasn’t fully rebounded to the levels seen before the 2019 economic downturn.
These figures underscore the crucial work ahead to elevate diversity and inclusion within the automotive industry. It’s a challenge that NAMAD continues to address with unwavering determination.
How NAMAD Empowers Minority Auto Dealers
NAMAD offers a comprehensive suite of services and support to empower minority auto dealers:
1. Advocacy: Shaping a More Inclusive Industry
NAMAD engages with policymakers at all levels—local, regional, and national—to establish fair business practices that create sustainable opportunities for minority entrepreneurs in the automotive industry.
2. Networking: Building a Powerful Community
The organization fosters connections among minority dealers, creating platforms to share experiences, insights, and best practices. This network is especially valuable for those new to the industry, providing guidance and support.
3. Education and Training: Staying Ahead of the Curve
NAMAD provides educational programs and resources to keep minority dealers informed about industry trends, best practices, and business management skills, empowering them to stay competitive and adapt to evolving market dynamics.
4. Partnerships with Manufacturers: Expanding Opportunities
NAMAD collaborates closely with car manufacturers, both domestic and international, to promote diversity within their dealership networks and create more opportunities for minority-owned dealerships to represent their brands.
5. Financial Resources: Fueling Growth and Success
The organization connects minority dealers with financial resources and programs tailored to support their growth and sustainability.
African American Owned Car Dealerships: Stories of Trailblazers
The history of black-owned car dealerships in America is rich with inspiring stories of resilience and success. Here are a few pioneers who broke barriers and paved the way for future generations:
Homer B. Roberts: A Legacy of Firsts
In 1923, Homer B. Roberts made history as the first African American to be awarded a new car franchise—the Hupmobile franchise in Kansas City, Missouri. His achievement was a pivotal moment, laying the foundation for the growth of black-owned dealerships in America.
Ed Davis: Challenging the Status Quo
Ed Davis became a Studebaker dealer in Detroit in 1940. His determination led to another historic milestone in 1963 when he became the first African American to receive a Big Three franchise in the post-World War II era, with a Chrysler Corporation franchise in Detroit.
Al Johnson: Leading the Way at GM
In 1967, Al Johnson broke new ground by becoming the first African American to receive a GM franchise with an Oldsmobile dealership in Chicago. He further solidified his legacy by acquiring a Cadillac dealership in Chicago in 1971, another historic first for African American dealers.
These trailblazers, along with countless others, have demonstrated the immense potential of African American owned car dealerships, inspiring generations to follow in their footsteps and make their mark on the automotive industry.
The Future of Minority Representation in Auto Dealerships
The automotive industry is undergoing a period of rapid transformation, with the rise of electric vehicles, changing consumer preferences, and advancements in technology. These shifts present both challenges and opportunities for minority auto dealers.
The Current Landscape: Progress and Areas for Growth
Recent data provides a glimpse into the current state of minority representation across various automotive brands:
- General Motors: 342 minority-owned dealerships out of 4,015 total dealerships.
- Stellantis: 264 minority-owned dealerships out of 2,591 total dealerships.
- Ford Motor Company: 237 minority-owned dealerships out of 3,027 total dealerships.
- Toyota: 102 minority-owned dealerships out of 1,244 total dealerships.
- BMW: 22 minority-owned dealerships out of 365 total dealerships.
- Mercedes-Benz: 25 minority-owned dealerships out of 384 total dealerships.
- Hyundai: 66 minority-owned dealerships out of 841 total dealerships.
- Kia: 72 minority-owned dealerships out of 788 total dealerships.
- Genesis: 24 minority-owned dealerships out of 240 total dealerships.
These numbers, while showing progress, also highlight the substantial room for growth in minority representation across all brands and dealership categories.
Emerging Opportunities: New Avenues for Growth
The evolving automotive landscape, with the rise of electric vehicles and changing consumer preferences, presents new opportunities for minority entrepreneurs to enter the market and expand their operations.
Diversity’s Impact: A Stronger Industry for All
Increasing minority representation in auto dealerships isn’t just about social equity—it’s about better serving an increasingly diverse customer base and creating a more dynamic and innovative industry.
- Meeting the Needs of a Diverse Market: With minorities accounting for 32% of all new vehicle purchases, dealerships that reflect this diversity can cultivate stronger customer relationships and achieve better sales performance.
- Reaching Underserved Markets: Diverse dealerships often have a deeper understanding of cultural nuances and community connections, enabling them to connect with underserved markets more effectively.
- Driving Innovation: As many minority dealers are first-generation owners, they bring fresh perspectives and innovative approaches to sales, service, and community engagement.
By fostering a more inclusive dealership landscape, the entire automotive retail sector benefits from new ideas, broader market reach, and stronger community relationships.
Challenges and Opportunities: Navigating the Road Ahead
Despite the progress made, challenges persist for minority entrepreneurs in the automotive industry:
- Access to Capital: Securing financing remains a hurdle, as many first-generation dealers may lack the generational wealth often seen in long-established dealership families.
- Representation in Prime Markets: Minority representation remains disproportionately low in prime markets and with luxury brands, underscoring the need for ongoing advocacy and support to level the playing field.
- Sustaining Growth: The effort to restore minority dealership numbers to pre-2019 levels demonstrates resilience but also highlights the need for continued targeted support and development programs to ensure long-term success.
Despite these challenges, the data indicates a slow but steady positive trend across most brands. This progress, combined with a growing awareness of the crucial role of diversity in business, points to a more inclusive future for the automotive industry.
Diversity as a Driving Force: A Vision for the Future
As we look to the future, increasing diversity in auto dealership ownership is not just a matter of fairness—it’s a strategic necessity for the industry to thrive in a rapidly changing world.
- Meeting the Needs of a Changing Market: The automotive industry must adapt to changing demographics to remain competitive and relevant. Dealerships that reflect the diversity of their customer base are better positioned for success.
- Fueling Innovation: A diverse dealer body brings a wider range of perspectives and experiences, fostering innovation in sales strategies, customer service, and community engagement.
- Navigating Technological Shifts: The automotive industry is undergoing significant technological advancements. Fresh viewpoints from a diverse dealer network are crucial for navigating these changes successfully.
The path to true representation in auto dealership ownership may be long, but it’s a journey worth taking. With continued support, advocacy, and the creation of new opportunities, we can envision a future where the diversity of dealership ownership mirrors the diversity of the communities they serve.
Willowood Ventures: Partnering with Minority Auto Dealers
At Willowood Ventures, we’re proud to support NAMAD’s mission and contribute to the growth of minority representation in the auto industry. Our founder, Dominic Scruggs, is not only a NAMAD member but also a Minority Dealer Candidate himself. This gives us a deep understanding of the challenges and opportunities faced by minority dealers today.
We offer a suite of services designed to empower both established and aspiring minority auto dealers:
- Facebook Sales Events: Expand your reach and drive sales through our innovative Facebook Sales Events, harnessing the power of social media marketing.
- Business Development Center (BDC) Services: Improve lead management, conversion rates, and customer satisfaction with our expert BDC team.
- Targeted Email Campaigns: Stay connected with customers and attract new ones with our professionally designed and managed email campaigns.
- Buyback Sales Events: Boost sales and acquire inventory with our effective Buyback Sales Events.
- Consulting Services: Receive personalized guidance to optimize your dealership operations and enhance profitability.
Whether you’re a NAMAD member or not, Dominic and the Willowood Ventures team are passionate about helping minority auto dealers succeed. We understand your challenges because we’ve walked in your shoes.
The Road Ahead: Embracing a More Diverse Future
The pursuit of true diversity and inclusion within the automotive industry requires a collective effort. Organizations like NAMAD provide essential support, advocacy, and resources, but the success of individual dealers also hinges on their adaptability, innovation, and commitment to exceptional customer service.
At Willowood Ventures, we believe that a more diverse auto industry benefits everyone. It creates opportunities for minority entrepreneurs, strengthens the industry as a whole, and better serves the needs of the diverse communities we live and work in.
If you’re a minority auto dealer striving to grow your business or an aspiring dealer ready to make your mark, we’re here to support you. Our services are designed to give you the competitive edge you need in today’s market.
Ready to take your dealership to the next level? Let’s connect! Call us today at 833-735-5998 to explore how Willowood Ventures can help you achieve your goals. Together, let’s accelerate the journey toward a more diverse and inclusive automotive industry.
Just Announced! 45th Annual Membership Meeting.
The location for the NAMAD 2025 45th Annual Membership Meeting has been announced. It will be held at the Legendary Wynn Las Vegas August 26th – 29th 2025. More details will be set to come, this next meeting will surely be one for the books! You can click here to register!
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.
Timeline of Main Events
Early 1900s
Late 1890s
The arrival of the first automobile leads to a boom in automobile manufacturing, with about 250–300 manufacturers emerging.
1920s
1923
Homer B. Roberts opens a dealership in Kansas City, becoming the first documented African American new car dealer.
1929
Roberts moves to Chicago and opens Roberts-Campbell Motors Company with Kenneth E. Caldwell, Jr. and Thomas J. “Big Piney” Brown.
1930s
1936
Dan Gaines opens a Ford dealership in Chicago. He becomes the first African American to hold a Ford franchise.
1940
Ed Davis opens a Studebaker dealership in Detroit.
1960s
1961-1969
- 1961: Robert H. Nelson, Jr. becomes the first African American to own import franchises (MG and Peugeot) in Chicago.
- 1963: Ed Davis receives a Chrysler-Plymouth franchise in Detroit, the first African American to secure a Big Three franchise.
- 1967: Al Johnson becomes the first African American to hold a General Motors franchise (Oldsmobile) in Chicago.
- 1969: Dan Brown becomes the first African American to hold a Lincoln-Mercury franchise in New Rochelle, NY.
1970s
1970-1979
- 1970: Nathan Conyers becomes the first African American to own a Ford dealership in Detroit.
- 1971: Al Johnson becomes the first African American to hold a Cadillac franchise in Chicago.
- 1973: Bill Bruton opens the first African American–owned Dodge franchise in Pontiac, Michigan.
- 1979: Barbara Wilson is the first African American woman listed as a dealer principal, co-owning a Honda dealership in Ferndale, Michigan.
1980s
1980-1989
- 1980: The National Association of Minority Automobile Dealers (NAMAD) is formed, with Nathan Conyers as its first president.
- 1985: Jackie Edgar becomes the first African American woman to own a Ford franchise in Breaux Bridge, Louisiana.
- 1989: Tony March becomes the first African American to hold a Saturn franchise in Hartford, CT.
1990s
1991-1999
- 1991: Cornelius Martin becomes the first African American with an exclusive Saturn franchise in Clive, IA.
- 1998: NADA elects its first African American board members, Carl Barnett, Sr. and Larry Brown.
- 1999: Ellenae Henry-Fairhust becomes the first African American to hold an Infiniti franchise in Huntsville, AL.
2000s – Present
2000-2020s
- 2005: Greg Jackson becomes the first African American dealer to reach $1 billion in annual sales revenue.
- 2010s: NAMAD keeps advocating for broader diversity in the automotive industry.