Bankrupt Mobius Motors Secures Buyout Deal to Keep Brand Alive

Mobius Motors Kenya, a company formerly in an ambitious plan to have a Kenyan car brand, has announced a full acquisition soon after an agreement with an undisclosed buyer. The deal is now expected to secure the Mobius car brand after it started assembling the BJ40 model of China’s BAIC Motor Corporation in 2021.

Earlier, Mobius had announced a voluntary liquidation that should be in place, but the meeting of the creditors had been postponed indefinitely after an agreement for a buyout of the interest. The company then accepted an offer on August 14, 2024, with a requirement that it, would be sealed in 30 days time. The purchaser remained anonymous, but there was speculation that a Kenyan businessman with serious political connections emerged as a serious bidder.

Despite making heavy losses over years and being overburdened with debts, Mobius continued to remain attached with potential value, especially in the assembly plant and product range. The new owner would expand the offerings of Mobius into the market for sports utility in the form of more models and variants, utilizing the assembly facility for more models. This aside, the acquisition could lead to a wider distributorship agreement with BAIC Motor Corporation, under which the Mobius III was launched as a locally branded version of the BAIC BJ40.

The company was founded by British entrepreneur Joel Jackson in 2011 and had giant investments of about $56 million placed in it in five rounds. Financial struggles coupled with the problems that came with Covid-19 are what has led to its current situation. The Mobius III 2021 is priced competitively at $43,000 to match imported SUVs like Land Rover Defender and Toyota Land Cruiser Prado.

As the buyout unfolds, so does the future of Mobius Motors and whether it would bring shift to the automotive space and market in Kenya.

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