Improving Leadership Diversity in the Automotive Industry

Diversity, equity, and inclusion have long presented challenges within the retail automotive sector. Despite the difficulty, it is a matter worthy of attention. The recent episode of Inside Automotive featured Cheryl Thompson, the Founder and CEO of the Center for Automotive Diversity, Inclusion, and Advancement (CADIA), who provided valuable insights for dealers to consider as they navigate the new year.

CADIA conducted a comprehensive study in 2023 to establish a foundational understanding of diversity, equity, and inclusion within the automotive industry. The study aims to illuminate the current state of DEI measures in the industry and offers recommendations for improvement.

Key findings from the study include the industry’s strong grasp of representation, but with nuances when examining diversity in job functions and leadership levels. The analysis revealed that leadership levels are disproportionately represented, resembling a triangle with more diversity at the top than at the bottom. This also shed light on the reasons behind the underrepresentation of women and minorities in technical fields.

The study, which examined approximately 40 companies in the automotive, mobility, and retail dealership sectors, highlighted the representation of women in the workforce, ranging from 24-26%. This signals a shift in the composition of leadership, showing inclusivity towards women.

However, the study also revealed a noticeable lack of representation of race and ethnicity in entry-level and higher leadership positions. This is a concern for Thompson, who advocates for applying the lessons learned from including women to the inclusion of racial and ethnic minorities as well.

Additionally, the study identified a higher attrition rate for African American workers in the automotive and dealer sectors. Furthermore, it brought attention to the higher representation of Hispanics and Latinos in retail compared to manufacturing.

According to Thompson, the industry must assess the entire employee lifecycle, with a focus not only on recruitment but also on retention and internal career development. She emphasises the importance of open conversations to address higher turnover rates, highlighting the need for ongoing progress discussions to support and understand the needs of the staff.

The complete CADIA report will be released at the end of January, coinciding with the launch of CADIA’s Accelerator DEI Certification Program for Automotive Industry Professionals.

“It is truly promising to witness the steady progress being made across the dealership,” remarked Cheryl Thompson.

Certainly, there is much work to be done in the automotive industry to enhance diversity, equity, and inclusion. Thompson’s insights underscore the significance of tackling these challenges directly and the necessity of more comprehensive and inclusive approaches. Moving forward, it is imperative for dealers to take proactive measures in creating a diverse and inclusive workplace, not only to attract and retain top talent, but also to foster a culture of innovation and forward-thinking.

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