Let’s Talk About the EDI Elephant in the Showroom

Imagine walking into a car dealership, about to spend thousands of pounds on a new vehicle, only to be disregarded as they start to talk to your male partner, assuming you’re not the one making the decisions. Not a scene from a 1970s sitcom, but a 2024 reality.  

Recently, while shopping for a used car with my daughter, I experienced this outdated attitude firsthand. The salesman’s condescending remarks about my title being Ms and that I “don’t look like an old spinster” left me speechless. It wasn’t just about the car anymore; it was about respect, or the lack thereof.  

Not Just a Used Car Problem

This anecdote sparked a flurry of similar stories. From pushy salesmen to patronising mechanics, these give the impression that the entire automotive industry is stuck in a time warp. And women, especially, bear the brunt of this outdated approach. 

One friend, for whom English is a second language, felt targeted. She mistrusted the entire process because of the salesman’s condescending tone. Research supports this; a 2023 study by the University of Sussex found that women are more likely to be quoted higher prices for car repairs than men, and this disparity is even greater for women of colour. 

This experience wasn’t an isolated incident. And it’s not just in the used car market; this issue permeates the entire industry, from luxury showrooms to local garages. 

The Sexist Default 

Even large, reputable dealerships aren’t immune. The dealership where I purchased my new car has a default setting of “Mr.” on their customer forms. For over a year, everything sent to me was addressed to “Mr. Palmer,” despite my requests for correction. It became a real issue when they owed me money and needed “Mr. Palmer’s” permission for the transfer – there is no Mr. Palmer! 

This isn’t surprising when you consider that a staggering 86% of car salespeople in the UK are men, according to a 2023 report by the Institute of the Motor Industry. This lack of representation undoubtedly contributes to the perpetuation of outdated attitudes and practices. 

The Cost of Exclusion 

The automotive industry is missing a massive opportunity. By clinging to outdated stereotypes and failing to embrace diversity, equity, and inclusion, they’re alienating a significant portion of the market. Women delay or avoid car purchases altogether because of these negative experiences. 

A 2024 Auto Trader survey revealed that 42% of women have walked away from a car purchase due to feeling uncomfortable or pressured. This statistic translates into a substantial loss for the industry. Moreover, a 2023 study by Frost & Sullivan estimated that the global automotive industry could be missing out on $300 billion in revenue by not fully addressing the needs and preferences of female customers. While this figure is global, it underscores the significant financial implications of ignoring a large segment of the market. 

The automotive industry is facing a range of challenges in today’s market, including economic uncertainty, erratic consumer behaviour, and intense competition. Global consumer complaints data shows that communication is a leading subcategory, mentioned in 37% of negative reviews for the industry. It’s tough out there, so why miss out on such an opportunity for improved sales?  

Imagine a car-buying experience where everyone feels valued, respected, and informed, regardless of their gender, ethnicity, or background. It’s time for the automotive industry to step out of the 1970s and into the 21st century. After all, shouldn’t buying a car be as exciting as the open road ahead, not a cringeworthy trip down memory lane?  

The Leadership Gap: Where’s the Diversity at the Top? 

So, how has the automotive industry remained so far behind on the Equity, Diversity and Inclusion (EDI) agenda? One glaring reason is the lack of diversity in leadership positions. In 2024, a mere 12% of board members in the top 100 automotive companies globally are women, according to a study by McKinsey. This stark underrepresentation at the decision-making level perpetuates a culture where outdated attitudes and practices persist. 

Diverse leadership teams bring a wider range of perspectives and experiences to the table, leading to more innovative solutions and better decision-making. The absence of this diversity in the automotive industry has resulted in a slow and inadequate response to the evolving needs and expectations of a diverse customer base. It’s time for the industry to recognise that embracing Equity, Diversity and Inclusion isn’t just a moral imperative; it’s a strategic business decision that can drive growth, innovation, and customer satisfaction. 

How can the Automotive Industry catch up? 

Whatever the industry it is critical that the Leaders truly own the agenda – the solution is not delegating to HR. In simple terms there are three key components to positive EDI change.  

1. An effective EDI Strategy that is unequivocally anchored to the bottom line. A great EDI strategy is baked into your company strategy. It’s the “how” to the “what”.  
2. Investment in Leaders at the top. Group EDI training lacks psychological safety, hindering leader engagement. Senior Leader one-on-one coaching fosters open dialogue, enabling personal growth and genuine commitment to EDI. If those at the top don’t buy-in then no one will.  
3. Access to training, discussion, psychological safety for all employees. Providing high quality training for all employees and spaces for discussion, innovation and change will shift the culture and bring your strategy to life.  

Do you have an EDI elephant in your showroom?  Are you doing the right things to remove it? 

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