Access to capital continues to be a major challenge for aspiring minority dealers, Mitchell said, while franchise opportunities are getting more expensive as well. One of the goals now is to ensure that Stellantis can maintain the gains it’s making, he said.
Over time, minority dealers may retire and end up selling their stores to non-minorities, which hurts the numbers in the long run. However, as attrition slows, the minority dealer count has held firm, Lester said.
“A big thing that’s on our radar screen is making certain that we hold on to the existing franchises that we have while we’re trying to gain more,” Mitchell said. “Because if we don’t, it’s going to be like running on a treadmill if we’re getting more but we’re losing more out the back door.”
GM was the first automaker to formally launch a minority dealer program in 1972. In the past, the company has said that its minority dealers, which include African American, Asian, Hispanic and Native American retailers, are among the most successful in its network.
“GM is very proud of our accomplishments with the Minority Dealer Development Program,” Tia Hardman, director of dealer diversity relations for GM, said in a statement to Automotive News. “We are dedicated to growing a performance driven, customer-focused and profitable dealer network by attracting highly qualified minority dealer candidates to ensure that our retailers reflect the communities and the customers that we serve.”
