By Rainbow PUSH Global Automotive Project
Despite recent challenges to DEI programs nationwide, the global automotive industry continues to make progress when it comes to minority purchasing and the growth of minority-owned dealerships, according to a number of prominent automotive leaders who spoke at the 25th Annual Rainbow PUSH Global Auto Summit.
Over the past three years, there have been double-digit increases in the number of minority-owned dealerships across the U.S., and automakers have continued to maintain their diversity, equity and inclusion commitments, said John Graves, Chairman of the Rainbow PUSH Global Automotive Project.
Graves presented the results of 2024 Rainbow PUSH Coalition Automotive Diversity Scorecard that showed progress for most automakers at the event that was held at the Motor City Hotel conference center. This year, Toyota topped the scorecard for the second consecutive year followed by Stellantis and General Motors.
The Scorecard allows automotive manufacturers’ leadership teams to self-evaluate their companies’ diversity based on six key areas: Employment, advertising, marketing, procurement, dealer development and philanthropy.
Automakers are scored as green, yellow or red. For the second consecutive year, no automakers received a red rating, which means diversity initiatives are nonexistent or undisclosed, or that relevant information was not provided.
Both Toyota and Stellantis received green scores in all six categories.
“Just so you understand, the criteria of the scorecard, there are no quotas,” Graves said. “All we ask is that you do better the ensuing year than you did the previous year…It is a partnership. That is the key word – that is what makes us strong.”
This year, for the first year, Ford was not part of the scorecard because the company decided not to respond to the survey that forms the basis of the Scorecard, Graves said.
Despite that lack of participation, Graves said, “They are still one of our legacy sponsors and we still partner with them…and they still have a head of diversity,” adding that they also purchased a table for this year’s conference. According to Automotive News, Ford said it values its long-standing relationship with Rainbow PUSH and is continuing to support the organization’s automotive summit and
scholarships. Ford said it has stopped participating in external surveys so it can “focus on the work required to support our Ford+ transformation and to provide a respectful and inclusive workplace for all our employees.”
Graves praised Rev. Jesse Jackson for being a major force behind much of that progress over the years.
“We all know why we are here. He was way ahead of his time,” Graves said. “He was more than a minister. We often call him a country preacher. But the country preacher has a footprint that goes around the world.”
Jackson, who is suffering from Parkinson’s disease, attended the conference and said a few words.
“But God is seeing me through it, and I am thankful to God,” Jackson said.
Recent growth of minority-owned auto dealers
Earlier in the day, Perry Watson, president of the National Association of Minority Automobile Dealers, provided a historical overview of the number of minority-owned dealers over the years. Watson said there was a period of robust growth from 1999 until the Great Recession that was followed by a significant decline from 2007 to 2009. But that period was followed by a rebound in recent years.
Watson said the number of minority-owned auto dealers peaked at more than 1,800 in 2005 before plummeting to less than 1,000 by 2009. Today, that number has rebounded to more than 1,500 with a gain of 94 dealerships with a minority-owned status last year.
“We are very happy about that…But we still only represent only 8% of the industry,” Watson said, because in total, there are more than 18,000 auto dealers in the U.S.
Growing minority supplier spending in an electric vehicle world
Building on the progress that the industry has made with supplier purchasing programs will be a major challenge in the coming years as the industry makes a transition to electric vehicles, and the parts that are needed for vehicles changes, according to the vice presidents of purchasing from four different automakers.
Automakers are still trying to figure out the Battery Electric Vehicle (BEV) ecosystem, and once they do, they can bring other OEMs along, said Robert Young, group vice president of purchasing and supplier development at Toyota.
“Having a supplier diversity program makes our supply base better, it makes our buyers better, it gives us an open-door policy to seek out the best of whatever it is that we need.”
Jeffrey Morrison, vice president of global purchasing and supply chain at General Motors, argued that the transition to electric vehicles provides automakers and suppliers with an opportunity to increase diversity spending.
“The (electric vehicle) EV transformation is an opportunity to change who our partners are,” he said. “When we look at changes to supplier diversity, we just want to keep the pedal down”
Importance of education to ensure future equity
Another major theme of the conference was the importance of providing high school and college students with the skills necessary to support the automotive industry of the future, which will be increasingly focused on developing, designing, selling and fixing electric vehicles.
More than $500,000 in scholarships with a focus on Michigan college students were handed out to more than 50 students during the conference.
“I know the power of scholarships,” said Janeen Uzzell, CEO of National Society of Black Engineers (NSBE), which has 24,000 members worldwide. “So, for all the partners that are funding education, I am the product of a debt-free education, and it has meant all the difference to me.”
Uzzell was also critical of companies that have been backtracking recently on DEI programs, calling them “cowards” for reacting to political pressure.
“We’re not going anywhere. And we have already proven that we can do it ourselves if given the opportunity or if we have to – and surely you know that we are worth the investment,” Uzzell said. “If you leave us out, we are coming back stronger. You don’t want to do that.”
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