As you may know, General Motors undertook a major reorganization of its Minority Dealer Development Program in order to raise profitability, as well as increase the number of minority-owned dealerships. The effort was based upon an independent review of its Minority Dealer Development Program, requested by GM Chairman J. H. Smith and the Reverend Jesse Jackson, and conducted by Weldon Latham of the law firm of Shaw Pittman.
The year-long review was designed to present General Motors with a set of recommendations that would address minority dealer concerns, and act as a blueprint for change to the 25-year old effort - the longest commitment to minority issues of all auto companies. Based upon the results of the independent review, 213 separate recommendations to improve the program and raise the number and success rate of minority-owned dealerships in the United States were implemented over the past year.
We have reason to be very pleased with what we have accomplished. Profits at General Motors minority dealerships are up dramatically from last year, and 26 new minority dealerships were added to our roster, bringing the total to 320 minority-owned and operated stores. In addition at year-end, there were 53 minority dealerships that earned over $1 million before taxes and bonuses.
Eric Peterson General Director GM Minority Dealer Development Detroit, MI.