Rev. Jesse L. Jackson, Sr., founder and president of the Rainbow/PUSH Coalition, issued a statement criticizing what he characterized as discriminatory lending patterns during the 4th Annual Rainbow/PUSH Automotive Symposium in Detroit, focusing on the economic gap between minorities and mainstream America.

"On the heels of successful negotiations with the United Automotive Workers, the auto industry is still faced with predatory lending schemes, a lack of diversity among its dealers and too few African American and Latino suppliers," Jackson said. "It is our hope that the auto industry will work just as diligently to resolve these issues as they did to resolve the union’s issues. The cultural blinders must be removed if the auto industry plans to grow, remain strong, and compete globally.

"We can build cars on any assembly line, yet cannot sell them in urban markets," Jackson said. "We can drive the latest vehicles, yet we pay higher loan and insurance rates. And to add insult to injury, automotive manufacturers can design vehicles targeted to African Americans customers, yet we do not have a billion dollar supplier."

Jackson said the auto industry has a responsibility to work to resolve such issues. "It is unacceptable that African Americans and Latino teachers pay more interest than White teachers, that African American and Latino GM workers pay more interest than White workers," Jackson said. "It is unacceptable that even the Black and Brown military troops that defend our nation pay more than their White counterparts."

Jackson offered a plan of action which he said would help to resolve such issues.

"First, we can place a cap on markups at all captive and non-captive finance companies, banks, credit unions and other financial institutions," Jackson said. "We will advocate for federal legislation to make markups illegal based on race."

"Second, we must raise the bar for all automotive companies to increase minority dealers to at least 15 percent," Jackson said. "It is deplorable that of 26,047 dealers only 5.4 percent are minorities.

"My final point that needs to be addressed today is the need to increase the total dollars spent with the minority suppliers," Jackson said. "We feel that Bing Steel, headed by Dave Bing, should have revenues in excess of one billion dollars. Rainbow/PUSH Coalition will advocate to make this dream a reality."

Jackson, saying that "it makes good business sense for all automotive manufacturers to work toward our recommendations," said the Rainbow/PUSH Coalition "will not be satisfied until people of color and women are allowed to play on an even playing field and the cultural blinders have been removed in the auto industry."

According to Jackson, a new formula must be established by the automotive industry for re-distribution of profits. "We will address predatory lending because it is illegal and immoral for institutions to lend based on race," Jackson said. "We will seek federal legislation to address the issue of market caps at all captive and non-captive finance companies, banks, credit unions and other financial institutions."