Auto Market Sales to Blacks Decline Amid Pandemic, Daily Street Demonstrations, & Fewer Dealerships

SITUATION:
The impact of COVID is going impact auto sales, including those to the black demographic.
The number of Black owned dealerships has declined.
Vehicle Sales to African Americans by black dealers is declining.

SIGNIFICANCE:
Young African Americans are not being recruited into the automotive business.
Not enough new black entrepreneurs are entering retail automotive and owning dealerships.
That is compounded by a lack of access to capital for minority dealer funding.
Proportion of all U.S. new-vehicle registrations comprised by African-Americans is about 10%

SOLUTION:
As more blacks enter the market, dealers and OEMs need to begin focus on sales to blacks
Hire more black in management, & create new opportunities for blacks at dealership and OEMs.
Renewed awareness of the potential for auto sales to Blacks needs to occur.

STATS:
Black make up 13 percent of the US population.
There are 261 black-owned dealerships in the United States today.
Half as many as three years ago or an 18 % decline in dealerships overall.
Reflects a seismic shift in the tradition of black business in this country.

SOURCES: The coronavirus pandemic has upended auto sales and buying a car will never be the same” https://www.cnbc.com/2020/05/21/the-coronavirus-pandemic-has-upended-auto-sales-and-buying-a-car-will-never-be-the-same.html

Black Owned Auto Dealerships

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