Growing
the minority
dealer baseInsights from dealers
and industry executives

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Introduction

Today’s minority
retail auto market

Issues andconcerns
for women

Tips for successFuture of theminority dealer
base

Next steps:
Keeping andstrengthening
the dealer base

introduction

leadership teamMarisa Carnevale-Henderson
Market Executive
Dealer Financial Services
Bank of America
marisa.carnevale-henderson@bofa.com

Jim Cockey
Market Executive
Dealer Financial Services
Bank of America
james.d.cockey@bofa.com

Derek Comestro
Market Executive
Dealer Financial Services
Bank of America
derek.comestro@bofa.com

featured partner
Mitch Mitchell
Executive Director
Chrysler Minority
Dealers Association

The Chrysler Minority Dealers Association (CMDA) was established in1986 to give voice to current minority dealers — and to aid those aspiring
to become dealers.
Supporting diversity also is a passion at Bank of America. The Bank’slongstanding 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 dealersdevelop the relationships needed to acquire and sustain franchises. They
provide educational experiences to assist business owners in developing andhoning their professional acumen. Lastly and most importantly, CMDA andother minority dealer associations advocate for opportunities — with thevarious 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 ownershipin the industry. It’s imperative that dealer networks reflect those changing
demographics in order to optimize sales and business opportunities withinthose communities.
This report is designed to continue the discussion, and to celebrate thestories and the strength of the current minority dealers in our industry.
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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. andtook a job selling cars in Texas after positionsin the optical field dried up.
Shannon Inukai-Cuffee is a second-generation
dealer; her father was born in a JapaneseAmerican 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

1,100

Minority-owned

18,000Total

Although in the 1970s auto manufacturers
implemented programs to increase thenumber of minority dealers in the country —at that time, largely in African-American
communities — those efforts have dwindled.
The industry increasingly has welcomeddifferent ethnicities, especially dealers of
LatinX and Asian descent, but the number ofminority-owned stores overall has decreased
dramatically since its peak in 2005. Today, ofthe approximately 18,000 dealerships in the
U.S., only about 1,100, or 6%, are minorityowned, 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.

“I’m a big believer in putting
the right ethnicity in the rightmarket. There are plenty ofpeople who connect with me
and buy from me because
I’m Indian. I think the
manufacturers are realizingthat also.”
Jay GillPresident
Gill Automotive Group
Fresno, California

According to the U.S. Census Bureau’s latest
data, four in 10 Americans identify theirethnic background as something other thanwhite — 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.

Source: National Association of Minority Automobile Dealers.

growing the minority dealer base3

today’s minority retail auto market“Manufacturers recognize
the importance of having
these dealers within
their network because
they recognize theimportance of serving
the communities thosedealers 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 ourconsumer base are minorities. Yet less than
10% of our dealer body is minority,” says Jay
Gill, a dealer of Indian descent and presidentof Gill Automotive Group in Fresno, California.
“That equilibrium needs to be adjusted. I’ma big believer in putting the right ethnicity
in the right market. There are plenty ofpeople 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 databaseand loyal customers in his Texas market. “Yourname is on the dealership, they see what you
do and how you are involved in the community.
Whether they speak Spanish, or are AfricanAmerican, they want to come to a minority
dealership.”
Mitch Mitchell, executive director of the
Chrysler Minority Dealers Association, says,“Manufacturers recognize the importanceof having these dealers within their network
because they recognize the importanceof 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 thesecustomers.” But Mitchell says any OEM efforts
on behalf of minority dealers should not beviewed as a charitable or feel-good effort.
“Overall, minority-owned businesses fare justas 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 abusiness standpoint.”
Derek Comestro, Bank of America Dealer
Financial Services Market Executive, says
representation of ethnic minorities — andwomen as well — in dealership ownership,
management and public-facing roles is
especially important as the industry’s
consumer base changes. “It feels obvious: Asa business, you want your franchises andyour team to match your client base. There
will be a 50% minority population in thiscountry 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 easieror 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 pursuingminority 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’schanged.”On the positive side, Gill says, “There are
more dealers out there who have paved thepath — 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’sa challenging market no matter how we lookat it,” he says. “Now especially there is a lot of
uncertainty.”
Some of the responsibility for maintaining
and growing the minority dealer base lies withcurrent 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 theright 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 base4Issues andconcerns
for women“It has been hard at times.
As a woman, you have towork twice as hard, always
feeling that you have toprove yourself. There canbe a lot of dry spells as awoman when you aren’t
getting feedback fromothers 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 dramaticallyunderrepresented in the dealership industry. Less
than 20% of all dealership employees overall are
women, NADA reports — and less than 2% oftechnicians. Although many meet the same sortsof obstacles confronted by ethnic minorities,
women also face unique challenges in theindustry. Looking back over her career, Shannon
Inukai-Cuffee says, “It has been hard at times. Asa woman, you have to work twice as hard, always
feeling that you have to prove yourself. There canbe 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, InukaiCuffee 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 thinkit’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-dominatedbusiness and its historically long hours andweekend work deter many women from even

Female representationin the auto market

<2%
<20%

of techniciansof 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 aveteran woman, and he continues to look formore 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 theychoose to deal with a male salesperson, theywant 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 tochange clothes. The infrastructure is not even
there to bring a female tech into the businessin most places. So in order to create thoseopportunities, I have to prepare, too.”

growing the minority dealer base5

Tips for successAcquiring and operating an auto dealershipis an exciting but demanding proposition foranyone. But women, blacks, immigrants andother ethnic minorities often face additional
challenges: cultural biases, a smaller networkof partner and financing options and a lack ofaccess 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 Comestroof Bank of America says, “The best thing
an ambitious person can do is start with adealership or group that, first, believes inthe values of diversity and inclusion. Find abusiness 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 andentrepreneur Jay Gill mentors many employees
and young people interested in a dealershipcareer. 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 makegood 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 thelong haul, you’ll come out better and stronger,rather than going from place to place.” Hedoes 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 importantfor younger executives to take advantageof every opportunity to grow and to learn
new skills and departments. “We don’t haveenough good people who want to takeadvantage of opportunities,” she says. “Wehave great opportunities in our own autogroup. We’re more than happy to support
younger people. But it’s about raising yourhand.” Comestro echoes that thought: “Don’t
skip steps. If you want to rise in management,
spend time learning about all the dealershipprofit centers — service and parts, F&I,
accounting — and not just the front end.”
Start saving now: Ken Thomas climbed
through the management ranks and thenfinally had the opportunity to acquire adealership 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 gainas 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 wantto 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 havethe desire and the passion
for the business in order tosucceed.”Gus Rodriguez
Dealer Principal
Dodge City of McKinney
McKinney, Texas

growing the minority dealer base6

tips for successMinority dealers faceunique challenges
CulturalbiasesFewer financing
options

dealerSmaller partner
network
Insufficient
capital accessinto this, I had to leverage my 401k. There’s
opportunities out there, but if you don’t haveenough money, it’s not going to happen foryou.” 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 thefunds to invest in a dealership opportunity;
it’s critical to have a basic understandingof business and finance. Dealer Jay Rivchinsays, “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 surroundyourself with people who can keep up with
the information — so at any given moment,
your general manager can tell you where thedealership is at.”Seek out a partner: Comestro says the rightpartner can help a prospective dealer realize
their dreams. “If you do have ownershipaspirations, try to create a transition buyoutplan with your existing owner. If that is notavailable, try to partner with a silent investor,or another individual who can help with thecapital but let you run your business,” he says.
OEMs, lenders and buy-sell brokers can often
help identify potential partners who have adesire 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 otherparty’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 backto the store, check each department, andlearn 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 orowns as a minority dealer, and spend threedays or a week there. Learn what they do.
Learn from each other.”
Become an active member of industry
associations: CMDA, other OEM-specificdealer associations, the National Associationof Minority Automobile Dealers and otherindustry groups provide opportunities to
network: to meet established dealers, or
executives aspiring to become dealers, as wellas contacts at OEMs, lending organizations
and other vendors. These contacts can open
doors to mentorships, partnerships and otherlearning opportunities. “Associations are superimportant and always have been,” Comestro
says. “In terms of providing advice, being achampion, and helping build networks among
members, associations can play a huge role inhelping 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 makein 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 thepassion for the business in order to succeed.”

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 base7

Future of theminority dealer baseToday’s group of successful
minority auto dealers haveworked hard and created a pathfor others to follow in their wake.
These dealers say it’s importantto 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 degreefrom Fresno State University, Gill went towork 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 andreceived a $200,000 loan from the Small
Business Administration, using that to purchaseproperty 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 thatbackstop, like some of the dealers out there
who are part of second- or third-generation
dealership families."

ShannonInukai-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-Cuffeesays, “I wasn’t sure if the car business was forme.” But finding herself a single mom with adaughter to support, she decided to jump backinto the dealership business; she attended
NADA Academy, becoming service manager
at Dick’s, then general manager. When theirfather passed away 10 years ago, she and herbrother took over the business, and as copresidents share management duties at theirfour dealerships.
"We try to give other minorities opportunities
in our businesses. But it feels a bit like wemight be a dying breed… If we don’t do moreas an industry, we certainly aren’t going tohave 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 andprofitable, 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 theminority dealer body; it takes a lot of cash
to run just one dealership… If there are notspecific programs where manufacturers aresupporting 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 eyeopening. There were beautiful giant muscle
cars, fast cars. And I found that if you worked
for a car dealership, they gave you a car todrive.” He started as a salesperson at Dadeland
in 1979, rising to general sales manager. Aftera brief stint at another dealership, he cameback to Dadeland as GM and part-owner, andtook full ownership in 2002. Today he has two

growing the minority dealer base8

future of the minority dealer basedealerships on Florida’s fabled highway U.S. 1
and a third store in the Homestead area. “Onlyin America,” the gregarious Rivchin says,“can thishappen to someone like me.”
“I’m worried about it — because we are notworking 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’mconcerned that we need to come together.
Just like any successful car dealership, we
need to sit down, come out with our businessplan — 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 andserved 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 thecapital — he purchased a dealership that waslosing money, and turned it around in the firstyear. His daughter, Augie, today serves as his

general manager. “We have been together, as afamily, for more than 25 years,” he says of his
dealership staff.
“There is an opportunity out there. There isa new generation of people in the minority
dealer community, who know others who
have been involved in the car business. Thatnew generation can take the torch from us
and run with it and make it better. One of
the mistakes a lot of minority dealers makeis they don’t give the opportunity to theirown kids. I used to hear, 'I don’t want mykids in the business, it’s too hard. Let them
be a doctor or lawyer.’ I say, let your kids dowhatever they want to do. And I think we’regoing 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 thoughtworking on cars would be his dream job.
At 18, he started at a local dealership as amechanic — but found he didn’t love being an
auto tech. “I knew I liked cars, but didn’t knowwhat part of the business I wanted to be in,”he says. After also being a service advisor, hemoved into a sales position. Finally, he says, “Ienjoyed and excelled at it.” He left for anotherDetroit-area Chrysler dealership, where he spent
25 years, eventually being elevated to generalmanager. Three years ago, after looking fora store, he and two partners finally had theopportunity to purchase Northland CDJR — thedealership where he started his career. Aftertaking 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] isgoing to stay stable. Right now there are too
many corporate-owned stores coming in andoffering crazy money to buy out dealers. Justin 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? Whatminority owner can pay that? And on theother hand, who can say no?”Jay GillPresident
Gill Automotive Group
Fresno, California

Shannon Inukai-Cuffee
President
Dick’s Auto Sales
Hillsboro, Oregon

Jay Rivchin
Dealer Principal
Dadeland Chrysler Jeep Dodge Ramand 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

growing the minority dealer base9

Next steps:
Keeping andstrengthening
the dealer base
So what’s next? As current minority dealers,industry executives, OEMs and partnerorganizations like Bank of America assess
the landscape and the future of the minority
dealer base, they believe each group of
stakeholders — current dealers, OEMs andyounger executives — has a role to play instrengthening and expanding the minority
dealer base.
What dealers can do: “The U.S. populationis 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 ofminority dealers.”

How to build theminority dealer base

What dealers can do:• Expand the talent pool
• Plan for succession• Retain minority ownership• Create capital pools

Current dealers can help expand the talentpool, 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 thesales managers and general managers at aconference, that means there would only be
an opportunity thrown out for one person.
Our first priority is making sure we havecapable, competent management in thoserooms, to build a case for why there should
be more minority dealers. There have to bepeople ready to and capable of stepping into
those ownership positions. That’s our first
responsibility.”

What OEMs can do:• Recruit minority employees• Support minority dealers• Encourage candidate mentoring

What executives andfuture dealers can do:• Save money• Identify capital sources• Seek out mentors• Participate in industry groups• Learn business fundamentals

growing the minority dealer base10

next steps: keeping and strengthening the dealer base“As a minority dealer, if
you’re going to sell, you
should approach anotherminority dealer to sell. A lot
believe that if they sell to amajority dealer they’re goingto get more money. I’m notsure that’s true anymore.”
Jay Rivchin
Dealer Principal
Dadeland Chrysler Jeep Dodge Ramand 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 tocultivate the next group that’s coming up — asbusinesspeople,” he says. “They need to makecertain they have minority members in the
management team, in important meetings, sothey 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 theirbusinesses. “My problem is talent,” Jay Gillsays. “We need to build that bench, developthat bench, train that bench. As a seniordealer, if I’m going to grow my enterprise, andscale it, I need those guys. What I want to dowith these guys is to partner with them: putthem through the development process, find adeal, become their partner, mentor them andthen let them buy me out at some point. We
want to develop these young kids, hold theirhands in the process, then eventually let them
fly on their own.”
Mitchell also says not enough dealers areworking to transition their businesses tothe next generation — whether that’s theirchildren or other trusted employees. “A lot of
it is about succession planning and staying
around long enough to see that through,” hesays. “That’s the strongest way we continue,
through succession planning. It’s so expensive
to get a franchise these days; it’s easier toinherit or buy into a family dealership.”kids want to get into business, they end up
selling to big groups rather than looking fora successful minority dealer.” Rivchin thinks
the situation could be helped by bringing theminority dealer community together withmore seminars and discussions with financial
experts (buy-sell brokers, financial advisors) to“open their minds.”

Some successful dealers, like Gus Rodriguez,
are preparing their children to take over theirdealerships. Shannon Inukai-Cuffee and herbrother took over the family dealership fromtheir father. But other dealers say they want
their children to make their own decisions. Jay
Rivchin, who has four children, says, “If theywant it, they have to come to me. I’ve learned
that if I push too hard, I push them away.”

Mitchell agrees, and takes it one step further.
“We have to do a better job in terms of findingor 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 capitalfund, or having banking partners that havea pot of funds for specific investments inminority dealerships or startups. Some of theburden is on us to create those vehicles forpotential candidates.”

Some dealers also believe current minority
dealers ready to sell bear a responsibility to atleast try to keep their stores minority-owned.
“As a minority dealer, if you’re going tosell, you should approach another minority
dealer to sell,” Rivchin says. “A lot believe that
if they sell to a majority dealer they’re goingto 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

What OEMs can do: OEMs’ commitment totheir 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 thegreatest impact, Rivchin says, the efforts haveto start at the top. “If the OEMs don’t make acommitment from the chairman or board level,
if they don’t believe in the minority dealer

growing the minority dealer base11

next steps: keeping and strengthening the dealer basebody, and filter that down to the presidents,
VPs, and regional managers, it’s not going towork. There has to be a commitment from thevery top, and accountability down.”
Mitchell says, “This is a relationship business,and the OEMs can do a better job fromthe standpoint of creating and maintaining
relationships with their minority dealers, andpotential 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 canfeel more like publicity efforts than robust
recruitment and development. “Do they havean honest outreach program with a true
minority development program?
That’s got to fall on the manufacturers,” hesays. “Yes, the dealer has to have someone inplace that is capable of stepping into thosepositions, but the manufacturers have totake that next step with them — to get themthrough 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 anddevelopment 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 onin the process.

“If I was the only minority

What interested executives — future
dealer candidates — can do: Finally,
younger executives interested in a future
as an auto dealer “have to get ready for theopportunities,” Mitchell says. “If you havethe opportunity but if you’re not prepared,
it doesn’t mean anything. You have to beintentional about wanting that opportunity,from an early point in your career.” That
includes saving money, identifying capitalsources and seeking out mentors, hesays — plus “getting involved in organizations
such as ours, to talk to people to understandwhat’s involved in being a dealer.”managers at a conference,

It also means seeking out learning
opportunities. “Most dealers come from thefront 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 asales manager.”in the room, of all the sales
managers and generalthat means there would only
be an opportunity thrownout for one person. Our firstpriority is making sure wehave capable, competentmanagement in thoserooms, to build a case for
why there should be moreminority dealers."
Ken Thomas
Operating Partner
Northland Chrysler Dodge Jeep Ram
Oak Park, Michigan

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