Silver Box Acquires Mobius Motors: A New Chapter for Kenyan Automaker
Silver Box acquires Mobius Motors, addressing its financial turmoil, while appointing John Kavila as COO. The new ownership aims to expand market presence and tackle challenges like competition. Mobius, founded in 2009, has historically struggled against used imports but has plans to restart production and introduce new models.
Silver Box, a Middle East investment firm focused on tech products and services, has acquired Mobius Motors in Kenya, averting the automaker’s anticipated shutdown. This acquisition follows a period of financial turmoil for Mobius, marked by unpaid debts and a failed rescue initiative.
As part of the transition, John Kavila has been appointed as the new COO, while CEO Nicolas Guibert, who championed the sale, will depart from the company. Kavila expressed enthusiasm about leading Mobius, emphasizing its reputation for innovation and a unique Kenyan identity.
The new ownership by Silver Box aims to enhance Mobius’s market presence, introduce new vehicle models, and fortify the service network. However, challenges such as intense competition from second-hand imports, sluggish demand, and ongoing financial issues remain significant hurdles that need addressing.
Established in 2009 by Joel Jackson, Mobius sought to manufacture durable, economical SUVs tailored to African conditions, successfully raising $56 million in funding from notable investors. Despite launching various models since its first in 2014, priced at $10,000, the company struggled against the prevalence of cheaper second-hand vehicles.
In August 2024, Mobius entered voluntary liquidation after failing to stabilize, leading to an acquisition offer that curtailed a creditors’ meeting. At this point, two automotive dealers expressed interest, while Kenya’s Trade Ministry sought potential rescue avenues.
Mobius boasts a comprehensive production facility in Nairobi, adept in vehicle fabrication and assembly, and a partnership with Chinese automaker BAIC for the Mobius III launch. With Silver Box now at the helm, Mobius plans to reopen its service center and resume production by mid-2025, introducing a new off-road model by late 2025, potentially utilizing its Nairobi infrastructure.
The acquisition of Mobius Motors by Silver Box represents a pivotal step towards reviving the Kenyan automaker, which has faced numerous financial challenges. With new leadership under John Kavila and plans for market expansion, the focus will be on overcoming competition and rebuilding brand strength. Mobius’s established infrastructure may play a crucial role in its future, potentially heralding a new chapter for innovative automotive solutions in Kenya.
Original Source: techcabal.com
