Did Black America Save Cadillac?

Q: Did Black America Save the Cadillac Brand During the Great Depression?
~Bo Bahl
Lansing, Michigan

A: A popular story claims that Black Americans saved the Cadillac car brand during the Great Depression. According to the tale, Cadillac, General Motors’ luxury division, was on the brink of collapse when a forward-thinking manager noticed that many wealthy African Americans were purchasing Cadillacs through white intermediaries. At the time, Cadillac enforced a “no sales to Negroes” policy. The manager reportedly persuaded GM executives to lift this ban and market directly to African Americans. With little to lose, the executives agreed, and by 1934, Cadillac’s sales had allegedly risen 70%.

The story continues that Black Americans were able to buy Cadillacs during the Depression because they were less affected by the financial crash than white Americans. After all, many African Americans had savings kept at home rather than in failing banks. As the story goes, this combination of factors “saved” Cadillac and established a loyal customer base that endures to this day.

It’s an inspiring narrative, but how much of it is true?

The Facts Behind the Story

There was indeed a Cadillac manager who proposed selling cars directly to African Americans: Nicholas Dreystadt. In the early 1930s, Dreystadt noticed that many affluent Black customers were bringing Cadillacs into dealerships for service, despite the company’s ban on direct sales to Black buyers. He discovered that many of these buyers were paying white men several hundred dollars to act as frontmen in their purchases.

In 1932, Dreystadt presented his findings to GM executives. He argued that if African Americans were willing to pay extra to own Cadillacs, then the company could profit directly by removing its discriminatory sales policy. As Dreystadt reportedly told them, “Why should a bunch of white front men get several hundred dollars each when that profit could flow to General Motors?” (The Man Who Saved Cadillac, 1995).

The executives accepted his proposal. By 1934, Cadillac’s sales had risen by roughly 70%, the brand had broken even, and Dreystadt was promoted to head of the division.

Other Factors Behind Cadillac’s Turnaround

While ending the racist sales policy was an important step, it was not the sole reason for Cadillac’s revival. Dreystadt also implemented significant production reforms that reduced manufacturing costs while maintaining quality. Within three years, Cadillac’s per-unit production costs matched those of GM’s lower-end Chevrolet models (The Man Who Saved Cadillac, 1995).

Additionally, Cadillac’s recovery occurred during a broader industry-wide rebound that spanned from 1933 to 1937. All U.S. automakers experienced increased production during this period, suggesting that Cadillac’s resurgence was part of a general economic recovery rather than solely the result of new sales to African Americans (Did African-American car buyers save Cadillac in the 1930s?, 2024).

Marketing to Black America—or Not?

Although Cadillac lifted its sales ban, there is little evidence that the company actively marketed to African American consumers in the 1930s. A review of major Black newspapers—including The Pittsburgh Courier, The Afro-American, and The Chicago Defender—found no Cadillac advertisements for new cars during that decade. While used Cadillacs appeared in classified ads, the company itself did not target Black audiences directly.

As automotive historian Jim Koscs notes, “Dreystadt’s initiative for ending a racist sales policy in the 1930s apparently did not carry into Cadillac’s marketing. The division wanted dealers to stop turning away Black customers but did little, if anything, to actively attract them” (How Nicholas Dreystadt ended racism at Cadillac in the 1930s—or tried to, 2019).

The Myth of Black Prosperity During the Depression

Another common claim is that African Americans were less affected by the Great Depression because they avoided white-owned banks. While it’s true that many Black Americans distrusted banks, especially after the collapse of the Freedman’s Bank in the late 1800s, there is no evidence that this led to widespread financial insulation. In fact, African Americans were among the hardest hit during the Depression, facing the highest unemployment rates and systemic discrimination (Last Hired, First Fired: How the Great Depression Affected African Americans, 2025).

There is also no data to suggest that large numbers of African Americans, outside a small affluent minority, purchased luxury cars during this period.

Conclusion: A Partial Truth

Nicholas Dreystadt’s decision to end Cadillac’s racist sales policy was both morally significant and financially beneficial. It opened the brand to a new customer base and acknowledged the economic power of African American consumers. However, this change was only one factor among several that fueled Cadillac’s recovery.

The company’s revival was also driven by cost-cutting innovations, broader industry growth, and the nation’s slow economic rebound. While affluent Black Americans did contribute to Cadillac’s improved sales, it’s an exaggeration to say that they “saved” the brand singlehandedly.

The truth lies somewhere in between: Black America’s purchasing power mattered—and Dreystadt’s inclusive policy was a landmark moment—but Cadillac’s survival was the result of multiple converging factors, not just one community’s support.

Franklin Hughes
Jim Crow Museum
2025

 

References

Did African-American car buyers save Cadillac in the 1930s? (2025a, August 20). Indie Auto. https://www.indieauto.org/2024/11/25/did-african-american-car-buyers-save-cadillac-in-the-1930s/#:~:text=Dreystadt%20had%20noticed%20that%20a,by%20cultivating%20African%2DAmerican%20buyers

Hogan, M. (2024, November 26). How Black Americans helped save Cadillac and shaped its legacy of resilience and culture. Automotive Addicts. https://www.automotiveaddicts.com/103693/how-black-americans-helped-save-cadillac-shaped-legacy-resilience-culture

Klein, C. (2018). Last Hired, First Fired: How the Great Depression Affected African Americans. History.com. https://www.history.com/articles/last-hired-first-fired-how-the-great-depression-affected-african-americans

Koscs, J. (2019, October 22). How Nicholas Dreystadt ended racism at Cadillac in the 1930s—or tried to. Hagerty Media. https://www.hagerty.com/media/automotive-history/nicholas-dreystadt-ended-racism-at-cadillac-in-the-1930s/

 Rose, D. (1987). Black American Street Life: South Philadelphia, 1969-1971. Google Books. https://shorturl.at/ONBsd 

Schreiber, R. (2024, June 30). Did sales to Blacks save Cadillac during the depression? Cars & Culture. https://carsandculture.substack.com/p/did-sales-to-blacks-save-cadillac

Steele Gordan, J. (1995). The man who saved the Cadillac. AMERICAN HERITAGE. https://www.americanheritage.com/man-who-saved-cadillac