Silver Box has acquired Mobius Motors, overcoming financial struggles that threatened the automaker’s existence. John Kavila will become the new COO, focusing on expanding market share and accessibility. Meanwhile, Mobius faces challenges from competition and demand issues as production restarts and new models are planned.
Silver Box, based in the Middle East, has acquired the struggling Kenyan automaker Mobius Motors, just six months after the company announced intentions to cease operations. The takeover comes after a period of financial difficulties characterized by unpaid debts, disputes with suppliers, and the failure of earlier rescue attempts. This acquisition marks a shift in leadership, with John Kavila stepping in as the new COO, while CEO Nicolas Guibert will exit following the acquisition.
Kavila expressed pride in leading Mobius Motors, noting its innovative legacy and commitment to creating a distinctive Kenyan brand. He aims to build upon the company’s foundation by expanding market presence and improving consumer access. Despite these ambitions, Mobius faces ongoing challenges such as fierce competition from used car imports, weak demand for new vehicles, and previous financial instability.
Founded in 2009 by Joel Jackson, Mobius Motors intended to produce affordable SUVs tailored for African road conditions, successfully raising $56 million from investors, including Playfair Capital and the U.S. government’s DFC. Their inaugural model debuted in 2014 at a competitive price of $10,000, yet the company struggled against the prevalence of cheaper second-hand imports from abroad. Production strategies reliant on pre-orders suggested ongoing demand issues.
In August 2024, Mobius declared voluntary liquidation, unable to establish a sustainable turnaround plan, despite an advancement offer from a potential buyer. The Trade Ministry of Kenya investigated rescue options, as interest from automotive dealers emerged. Mobius’s Nairobi factory remains a significant asset, capable of producing vehicle components and offering a distribution agreement with Chinese manufacturer BAIC.
Under Silver Box’s management, Mobius has resumed operations at its service center and plans to restart production of the Mobius III by July 2025. A new model aimed at off-road enthusiasts is slated for release in December 2025. The new ownership may capitalize on the existing production capabilities to either refine current designs or introduce new vehicles.
The acquisition of Mobius Motors by Silver Box aims to revive the automaker amid financial distress, with plans to enhance market presence, introduce new models, and leverage existing production capabilities. Despite the promising leadership change and investment intentions, Mobius must navigate residual challenges, especially the competition from used car imports and fluctuating demand. The future trajectory of Mobius will depend on the effective implementation of strategic initiatives under its new management.
Original Source: techcabal.com
