The CMC Motors Group has announced that it will be shutting down operations within East Africa.
The company announced that multiple factors arising from an evaluation of bbusiness performance have influenced the decison to close in the region.
“CMC Motors Group has announced its decision to gradually wind down operations in Kenya, Tanzania, and Uganda in full compliance with local regulations and distributorship agreements.
“This decision follows a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation, and rising operational costs,” the statement released on Friday, January 17 read in part.
Despite restructuring efforts launched in 2023, the automotive dealer stated that the market conditions have failed to offer a viable path forward.
“Over the past 40 years, CMC Motors Group has played a vital role in supporting East Africa’s agricultural sector through the delivery of quality service, mechanization solutions, and steadfast support to its customers.
“However, despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward,” the statement further read.
The company has however expressed its dedication in assisting its employees throughout the transition period.
“The company is committed to supporting its employees during this transition and will ensure a smooth and orderly wind-down in adherence to all relevant agreements and regulations,” the statement concluded.
The company’s resolution to cease operations brings to the end a 40-year era of a brand that has been deeply intertwined with East Africa’s economic and agricultural development.
CMC Motors Group is owned by CMC Holdings Ltd, and in 2014, the company was acquired by the Al-Futtaim Group whose automotive businesses span more than 25 global car brands, including Honda, Toyota, Lotus, Lexus and Volvo.
Some of the trading subsidiaries under the group include Cooper Motor Corporation (Uganda) Ltd., Hughes Motors (Tanzania) Ltd. and Kenya Vehicle Manufacturers Ltd.
CMC began as a private company in July 1948, under the leadership of Mr Allen and Mr Cooper came to East Africa to sell Land Rovers.
Its first offices were housed in a wooden hut along the then Jackson Road before moving to Connaught House in 1952. In 1956 Cooper Motor Corporation transitioned from a private company to a public company combining vehicle sales, parts, service and administration under one roof.
Over the years, it took pride in being the exclusive distributor of a diverse range of automotive vehicles and products as well as farming machinery including New Holland Tractors, FieldKing Farm Implements, Nardi Farm Implements and Hero motorbikes from the world’s largest motorcycle manufacturer, Hero MotorCorp.