Sylvia Duruson
Mobius Motors, a Kenya-based automaker known for its affordable SUVs designed for African roads, has accepted an acquisition offer from an undisclosed buyer. This development comes just one week after the company, backed by Playfair Capital, announced its intention to shut down operations.
Nicolas Guibert, a director at Mobius, confirmed the acceptance of a bid for 100% of the company’s shares. Both parties aim to finalize the transaction within 30 days. As a result of this offer, Mobius has postponed a scheduled meeting with its creditors to allow for the acquisition negotiations to proceed.
The identity of the interested buyer remains unknown. However, speculation suggests they may be eyeing Mobius’ assembly plant in Nairobi. The facility could potentially be used to produce new models or continue manufacturing Mobius cars, which cater to small and medium-sized enterprises in sectors such as infrastructure, agribusiness, and supplies operating in remote areas.
Prior to this announcement, two dealers had expressed interest in acquiring the cash-strapped car maker. This information came to light after Hassan Abubakar, Permanent Secretary for Trade and Industry, revealed that he and representatives from the Kenya Association of Manufacturers (KAM) had visited the company’s plant to discuss potential rescue plans.
Mobius Motors boasts an impressive production facility equipped for various stages of vehicle manufacturing. The plant can fabricate vehicle frames, perform anti-corrosion treatments, conduct general assembly, painting, quality testing, and final inspection. Additionally, it houses a research and development unit, highlighting the company’s commitment to innovation.
The automaker has a distributorship agreement with Chinese automaker BAIC, which played a crucial role in the launch of Mobius III. This model represents an advanced version of its predecessors, Mobius I and Mobius II.
The company’s journey began in 2009 when British national Joel Jackson founded Mobius while working in Kenya. The automaker gained recognition for pioneering a stripped-down SUV model “built for African roads” in 2014. Their first model was priced at $10,000 (KES 1.3 million), significantly undercutting the market prices of standard SUVs in Kenya at the time.
Mobius’ latest model, the Mobius III, was retailing at $43,000. This price point positioned it competitively against imported and locally assembled vehicles such as Toyota Land Cruiser Prados, Land Rover Defenders, and Jeep Wranglers, which typically cost upwards of $65,000.
The acceptance of this acquisition offer marks a new chapter for Mobius Motors. It remains to be seen how this development will impact the company’s future operations, its workforce, and the broader automotive landscape in Kenya. The outcome of this acquisition could potentially shape the trajectory of local automobile manufacturing in the country and influence the availability of affordable, terrain-appropriate vehicles in the African market.
As negotiations proceed, stakeholders in Kenya’s automotive sector and Mobius’ customer base will be keenly watching for further details about the acquisition and its implications for the brand’s future.
