Wow. Did not realize how successful he had become. Good for Vinnie.
From Bloomberg
Vinnie Johnson went from a clutch player for the championship Detroit Pistons to owner of one of the biggest Black-owned auto suppliers in the U.S. Now, the entrepreneur says he's at risk of losing up to $2.5 billion in contracts because his company's executive ranks are too White.
The Michigan Minority Supplier Development Council stripped Johnson's company, Piston Group LLC, of its "minority" status, a designation that gave him a foot in the door of global automakers, which award lucrative supply-chain contracts to companies that are owned by and hire people of color.
The MMSDC, as the nonprofit is known, decertified the Piston Group in February after a protracted fight over the racial makeup of its management team. The Piston Group hadn't replaced its outgoing chief financial officer, who is Asian, with a person of color, leaving its 11-person executive team devoid of any minorities, save Johnson, who is the chief executive and chairman, and its government affairs director, who is Black. The council argues Johnson is not involved in the day-to-day operations of the company, either, another requirement for certification.
Johnson disagrees and in a lawsuit filed last month counters that the council has been arbitrary and opaque in its dealings with him. The MMSDC has used "unfettered discretion and secrecy to wrongfully punish Piston Group and the Piston Companies due to a misunderstanding of Mr. Johnson's role or personal differences with him,'' he argued in the suit. Both Johnson and the Piston Group declined to comment further before a ruling from the judge in the case.
The MMSDC said the lawsuit has no merit and that it requires all companies to meet the same basic criteria: at least 51% ownership by a minority, active minority management in day-to-day operations, and operational independence.
From Bloomberg
Vinnie Johnson went from a clutch player for the championship Detroit Pistons to owner of one of the biggest Black-owned auto suppliers in the U.S. Now, the entrepreneur says he's at risk of losing up to $2.5 billion in contracts because his company's executive ranks are too White.
The Michigan Minority Supplier Development Council stripped Johnson's company, Piston Group LLC, of its "minority" status, a designation that gave him a foot in the door of global automakers, which award lucrative supply-chain contracts to companies that are owned by and hire people of color.
The MMSDC, as the nonprofit is known, decertified the Piston Group in February after a protracted fight over the racial makeup of its management team. The Piston Group hadn't replaced its outgoing chief financial officer, who is Asian, with a person of color, leaving its 11-person executive team devoid of any minorities, save Johnson, who is the chief executive and chairman, and its government affairs director, who is Black. The council argues Johnson is not involved in the day-to-day operations of the company, either, another requirement for certification.
Johnson disagrees and in a lawsuit filed last month counters that the council has been arbitrary and opaque in its dealings with him. The MMSDC has used "unfettered discretion and secrecy to wrongfully punish Piston Group and the Piston Companies due to a misunderstanding of Mr. Johnson's role or personal differences with him,'' he argued in the suit. Both Johnson and the Piston Group declined to comment further before a ruling from the judge in the case.
The MMSDC said the lawsuit has no merit and that it requires all companies to meet the same basic criteria: at least 51% ownership by a minority, active minority management in day-to-day operations, and operational independence.