Local car assembler Mobius Motors is revving back to life with the launch of new models scheduled for July and December this year, marking a bold return after falling into financial woes late last year. 

In a statement on Tuesday, Mobius Motors, which had halted operations following a liquidation bid in August 2024, announced that it has been acquired by Silver Box, a Middle East-based investment company that specializes in corporate turnarounds.

With the buyout secured, Mobius said it has reopened its Nairobi service center and is ramping up production of the Mobius III model, set to roll out by July. 

The company is also gearing up for an even bigger milestone—a brand-new model slated for launch in December. Once on the brink of collapse, Mobius is now positioning itself for a fresh chapter, aiming to reshape Kenya’s automotive landscape with its latest innovations.

In the new-look company, John Kavila has been appointed chief operating officer (COO), succeeding Nicolas Guibert.

“Mobius Motors has built an exceptional foundation, and we are eager to build on this success by focusing on expanding our market share and increasing accessibility for Kenyan consumers,” Kavila noted in the statement.

Outgoing COO Guibert noted, “I'm happy to hand over to John Kavila, who will pursue the development of Mobius Motors… [He] will get the visionary and financial support from Silver Box to successfully expand the brand's market share, introduce newer models, develop a network of Service stations, and make of Mobius Motors a major player on the African continent.”

According to the Competition Authority of Kenya (CAK), noted that the parties met the regulatory requirement that merging companies whose combined turnover or assets, whichever is higher, is over a billion Kenyan Shillings seek approval from the authority.

“Upon analysis of the information provided by the parties in their application, the Authority determined that their combined turnover/assets were below the set threshold and, therefore, the transaction was approved in October 2024,” CAK Director-General David Kemei said.

“Owing to the parties’ combined size, the transaction will not raise competition or public interest concerns. In this case, the transaction will salvage a failing firm, thereby securing jobs and enabling the business to continue contributing positively to the economy.”

When Mobius Motors met hard reality

Last August, after just over a decade operating in the country's nascent car assembly industry, Mobius Motors, which is popular for its rugged SUVs shocked the market announcing that it is closing shop.

The company was established by a UK-born businessman, Joel Jackson, who fell in love with Kenya's challenging landscape. Over the years, the auto firm had been carving its niche, and giving hope to Kenya's nascent vehicle assembly business.

Mobius Motors' signature product, an SUV, was priced at Kes1.3 million, which was a considerable bargain compared to the cost of importing second-hand SUVs in the country.

But, faced with piling financial pressures, Mobius Motors was forced to make a difficult decision to slam the breaks on its operations.

"Notice is hereby given that a meeting of the creditors will be held on 15 August 2024 at 9am at Mobius Factory to consider, and if thought fit, to pass a resolution approving the shareholders' nominee as the Liquidator of the Company as per Section 408 of the Insolvency Act," a statement signed by Mobius Motors Kenya Ltd Director, Nicolas Guibert stated.

Speaking to Reuters on condition of anonymity at the time, one of Mobius Motors' shareholders revealed that tax increases had made it extremely difficult for the auto firm to maintain competitive pricing while staying afloat.

With the decision to wind up the business finalized, the challenges facing Mobius Motors prompted Trade and Investment PS Abubakar Hassan to tour the factory. He stated, "We explored corporate recovery, restructuring, and rescue mechanisms that can be leveraged in such circumstances."

The PS added, "Going forward, we are coming up with a program to assist such companies get strategic investors who are interested in distressed brownfield investment opportunities."

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