The Power of Diversity

GM Minority Dealer Development is helping to create a profitable, sales-effective minority dealer network that reflects consumer diversity through ethnic representation of all GM brands throughout the U.S. with a focus on priority markets.

  • MDD is the first minority dealer program of its kind in the industry. It was established in 1972 as an avenue for ethnic minorities to become GM dealers
  • MDD is a network of 231 minority dealers in the U.S. employing more than 15,500 people in their communities. This network represents 5.5% of the total GM dealer population
  • MDD represents African American, Asian, Hispanic and Native American ethnic groups. It also includes 22 minority women dealers
  • In 2015, GM minority dealers sold 178,754 new vehicles totaling $12.8 billion in revenue
  • 47% of GM’s minority dealers earned $1 million or more in 2015
  • MDD’s goal is to strategically grow a successful dealer portfolio reflecting the consumer diversity of the U.S. by attracting, recruiting, developing and retaining minority talent

 

Ethnic consumers are leading the automotive industry’s new vehicle growth, according to IHS Automotive. Therefore, investing in the ethnic consumer is a must for future business success.

  • African American, Hispanic and Asian consumers lead the growth of the U.S. vehicle industry, gaining a point of share (27% in 2015 vs. 26% in 2014). This outpaced industry registrations in year-over-year volume growth
  • The new vehicle industry (2014 vs. 2015) experienced 5% total growth. During that same time, ethnic consumer buying was up 11%. That’s 120% greater than the industry average. Breaking it down by individual ethnic group:
    • African American: 9% (80% more growth)
    • Asian: 6% (20% more growth)
    • Hispanic: 14% (180% more growth)
  • Automotive brand loyalty is 52% on average industrywide. African American women lead the industry in brand loyalty; women in general are more loyal than men. Breaking it down by individual ethnic group:
    • African American: 53%
    • Asian: 46%
    • Hispanic: 51%
  • Hispanic consumers present greatest growth opportunity; Asian consumers present the greatest conquest opportunity
  • The top 10 markets for African American new vehicle buyers:
    1. Atlanta*
    2. New York*
    3. Washington, D.C./Hagerstown*
    4. Chicago
    5. Houston
    6. Philadelphia
    7. Detroit
    8. Dallas/Ft. Worth
    9. Raleigh/Durham/Fayetteville
    10. Los Angeles

*volume leaders

  • The top 10 markets for Hispanic new vehicle buyers:
    1. Los Angeles*
    2. Miami/Ft. Lauderdale*
    3. New York*
    4. Houston
    5. San Francisco/Oakland/San Jose
    6. San Antonio
    7. Chicago
    8. Dallas/Ft. Worth
    9. Harlingen/Weslaco/Brownsville
    10. San Diego

*volume leaders

  • The top 10 markets for Asian new vehicle buyers:
    1. Los Angeles*
    2. San Francisco/Oakland/San Jose*
    3. New York*
    4. Houston
    5. Washington, D.C./Hagerstown
    6. Seattle/Tacoma
    7. Dallas/Ft. Worth
    8. Chicago
    9. Boston/Manchester
    10. Philadelphia

*volume leaders

 

According to the Nielsen Company, multicultural consumers are transforming the U.S. economy. Powered by both population growth and expanding buying power, they are reshaping how companies sell products to better connect with this increasingly diversity. Let’s take a look at these new customers.

  • Multicultural consumers are the most dynamic and fastest-growing segment of the U.S. population
  • Already more than 120 million strong and increasing by 2.3 million per year, multicultural populations are the growth engine of the future in the U.S.
  • Hispanics, African Americans, Asian Americans and all other multiculturals already make up 38% of the U.S. population, with census projections showing that multicultural populations will become a numeric majority by 2044
  • Multicultural Americans are a large, young and growing segment. Their growth is a product of both immigration and increased birth rates
  • Multicultural consumer spending in the United States $3.4 trillion annually
  • According to Nielsen, “The unprecedented influence of multicultural consumers on the behavior of non-multicultural shoppers is upending outdated assumptions and enlarging and expanding the multicultural market opportunity, which may be the key to the future”
  • These “multicultural consumers” are not only spending the most but also influencing how white consumers spend money
  • Multicultural consumers are younger, in their prime and already make up 38% of the U.S. population.
  • In the U.S., 21 of the top 25 most populated counties are already more than 50% multicultural

The combination of majority multicultural geographies and high levels of interethnic proximity magnify the need for ethnic and cross-cultural marketing. Additionally, multicultural consumers gravitate to brands, products and activities that reinforce their cultural roots.