Mobius Motors Acquired by Silver Box After Months of Financial Turmoil

Middle East-based investment firm Silver Box has acquired Mobius Motors Kenya, officially taking control of the troubled automaker just six months after the company announced plans to shut down. The acquisition comes after multiple failed rescue attempts, unpaid debts, supplier disputes, and a last-minute acquisition offer in August 2024.

Mobius Motors, founded in 2009 by British entrepreneur Joel Jackson, aimed to produce affordable and rugged SUVs designed for African roads. Despite raising $56 million from investors like Playfair Capital, Chandaria Industries, the U.S. government’s DFC, and Pan-African Investment, the company struggled to establish itself against a flood of second-hand imports from Japan, the UK, and Asia.

The company’s first model, launched in 2014, was priced at $10,000 (KES 1.3 million), making it far cheaper than traditional SUVs. However, even with subsequent models like Mobius I, II, and III, low demand and stiff competition led to Mobius entering voluntary liquidation in August 2024.

New Leadership and Future Plans

Following the acquisition, John Kavila has been appointed as the new Chief Operating Officer (COO). The company’s CEO, Nicolas Guibert, who supported the acquisition and described Silver Box as the most suitable option for Mobius’ survival and growth, will step down.

In a statement Kavila said, “I am deeply honoured to lead Mobius Motors, a company renowned for its bold and innovative approach in creating a truly unique Kenyan brand. Mobius Motors has built an exceptional foundation, and we are eager to build on this success by focusing on expanding our market share and increasing accessibility for Kenyan consumers.”

Silver Box plans to reopen Mobius’ service centre and resume production of the Mobius III by July 2025, with a new model expected to debut by December 2025. The company intends to expand Mobius’ market reach, introduce new models, and enhance its service network.

Challenges Ahead for Mobius Motors

While Silver Box’s ambitious plans to revive Mobius Motors are clear, significant challenges remain. The automaker’s struggle against second-hand vehicle imports, weak demand, and financial instability has been well-documented. The company’s production model, which relied on pre-orders with refundable deposits, further demonstrated its inability to attract a steady customer base.

Mobius owns a state-of-the-art production facility in Nairobi, equipped for vehicle frame fabrication, assembly, anti-corrosion treatment, painting, and quality testing. The facility also includes a research and development unit and had a distribution partnership with Chinese automaker BAIC to support the launch of the Mobius III.

Silver Box’s ownership could leverage these resources to produce new models or improve existing designs. However, whether the new leadership can truly turn the company’s fortunes around remains to be seen.

Will Silver Box’s intervention finally bring Mobius Motors the success it has long chased?