A well-known vehicle distributor, CMC Motors Group, is closing its operations in Kenya, Uganda, and Tanzania after more than six decades. The decision to shut down was announced on January 17 due to various challenges such as high operational costs, currency devaluation, and the loss of crucial vehicle franchises.
Established in 1948 in East Africa, CMC Motors Group gained popularity for distributing renowned automotive brands like Ford, Volkswagen, Jaguar, and Land Rover. Despite its strong presence in the region, the company faced difficulties over the years, leading to its eventual closure.
In 2014, the company was acquired by a Dubai-based group in an $86 million deal, which marked the beginning of a downward spiral. Losing significant franchises like Ford to competitors and facing financial challenges, CMC Motors Group struggled to stay afloat, resulting in employee layoffs and, ultimately, the decision to cease operations.
The closure of CMC Motors Group will impact over 200 jobs across East Africa, marking another significant exit in the region’s mobility sector following other recent closures.