Silver Box Acquires Mobius Motors Kenya: A New Chapter for the Automaker

Silver Box has acquired Mobius Motors Kenya, revitalizing the company after financial struggles and plans to shut down. John Kavila is now COO, aiming to expand market share and product lineup. The company faces challenges like competition and financial instability as it reopens its Nairobi facility and plans new SUV models by 2025.

Silver Box, a Middle East-based investment firm, has acquired Mobius Motors Kenya, a struggling automaker, just six months after Mobius announced its plans to close down. This acquisition concludes Mobius’s financial difficulties, which involved unpaid debts and disputes with suppliers. The acquisition marks a hopeful turn for the automaker as it transitions ownership during its recovery phase.

John Kavila has been appointed as the new Chief Operating Officer (COO) as part of the acquisition. CEO Nicolas Guibert, who supported the sale of Mobius Motors, will depart the company post-acquisition. Kavila expressed excitement regarding his new role, emphasizing Mobius’s innovative trajectory and commitment to expanding its market presence and accessibility for local consumers.

Silver Box intends to enhance Mobius’s market reach by introducing new models and fortifying its service network. Nonetheless, the company faces significant challenges, including competition from second-hand car imports, dwindling demand, and ongoing financial uncertainties.

Mobius Motors was founded in 2009 by British entrepreneur Joel Jackson, with the aim of developing affordable SUVs tailored for African terrains. It successfully raised $56 million from a variety of investors. Their first model debuted in 2014, priced at $10,000, which was a competitive price point compared to conventional SUVs. However, Mobius struggled against the influence of second-hand imports, which significantly affected sales and consumer interest.

In August 2024, Mobius elected to enter voluntary liquidation due to an unsuccessful effort to secure a financial turnaround. The company had deferred a creditors’ meeting following an acquisition offer from an undisclosed buyer. Two automotive dealers had expressed interest, while Kenya’s Trade Ministry considered various rescue strategies.

In addition to its SUV offerings, Mobius operated a comprehensive production facility in Nairobi with capabilities for vehicle fabrication, assembly, and quality testing. It also partnered with Chinese automaker BAIC for the launch of the Mobius III. Under Silver Box’s leadership, Mobius aims to reopen its service center and commence production of the Mobius III by July 2025, with plans for a new off-road SUV model to be released by December 2025.

The acquisition of Mobius Motors by Silver Box presents an opportunity for revitalization after a period of significant challenges. With new leadership under John Kavila and a commitment to expanding market access and product offerings, the future of Mobius is poised for growth. However, the company must address underlying issues such as competition from second-hand imports and financial stability to ensure its long-term success.

Original Source: techcabal.com