Perry Watson IV is leading a bold charge to increase minority ownership in the automobile industry, an effort that could reshape the face of American car dealerships. As president of the National Association of Minority Automobile Dealers (NAMAD), Watson is working to close the gap between minority consumers and minority dealers, a disparity that has persisted despite the growing buying power of minority communities.

Today, minority consumers purchase nearly 32% of new vehicles in America, yet the majority of dealership owners remain predominantly white. This disconnect not only affects the economic prospects of Black and other minority communities but also undermines their ability to build generational wealth. Watson’s initiative is crucial, as it aims to foster inclusivity and economic empowerment within an industry that heavily influences consumer markets.

NAMAD’s origins date back to 1980 when a recession threatened to wipe out many minority dealerships. The organization was founded to protect these businesses and ensure their survival. Since then, NAMAD has expanded its mission to include fostering diversity in dealership ownership and advocating for minority economic interests. This mission is deeply personal for Watson, who followed in his father’s footsteps to become a dealer and eventually the president of NAMAD.

Despite some progress, minority ownership in the auto industry remains low, with only about 8% to 9% of dealerships being minority-owned. This statistic is particularly striking given that minority consumers are expected to wield a significant portion of the $5.3 trillion in disposable income in the coming years. By increasing minority ownership, NAMAD aims to better serve these communities and ensure that the industry reflects the demographic realities of the market.

One of the key challenges facing minority dealers is access to capital. As vehicles become more expensive, the cost of acquiring a dealership has skyrocketed, making it difficult for aspiring owners to break into the market. To address this, NAMAD has established the Dealer Ownership Academy to train and mentor potential dealers, equipping them with the skills and knowledge necessary to succeed. Additionally, the organization is developing new models to provide financing options and reduce the capital gap, ensuring that more minority entrepreneurs can achieve their dreams.

The road ahead is challenging, but the work being done by NAMAD and its partners is creating a strong foundation for change. By focusing on inclusive economics, the organization is demonstrating that diversity is not just a moral imperative but a sound business strategy. As Watson notes, “the business case of inclusive economics is here, regardless of what’s happening politically.”

Originally reported by Rolling Out