CFAO Motors and DT Dobie merge operations

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NAIROBI, Kenya, May 10 – Motor vehicle dealers CFAO Motors Kenya and DT Dobie have merged their operations as the two businesses seek to grow their market share in the Kenyan new vehicle market.

As part of the merger, DT Dobie has transferred its business assets to CFAO Motors Kenya with effect from April 1 2023.

Consequently, the respective businesses of CFAO Motors Kenya and DT Dobie will be run under one entity, CFAO Motors Kenya.

Prior to this merger, the companies have been operating independently despite their common ownership.

In 2016, Toyota Tsusho Corporation (TTC) acquired 100 per cent shares in CFAO. With this acquisition, TTC integrated all its African operations, including those previously under Toyota Kenya under CFAO.

Accordingly, TTC transferred the shares it directly held in CFAO Motors Kenya (formerly Toyota Kenya) to CFAO resulting in CFAO's direct ownership and control of the Kenya TTC group entities including CFAO Motors Kenya and DT Dobie.

CFAO then decided to conduct its Africa operations under a single "CFAO" brand by harmonizing and integrating the operations of its various subsidiaries in Africa including CFAO's Kenya automotive distribution business.

The merger is part of CFAO Group's internal business reorganization project to streamline and simplify the structure of its mobility business in Kenya by combining the operations of CFAO Motors Kenya Limited and DT Dobie Kenya

The Managing Director of CFAO Motors will be Arvinder Reel and its operations will be divided into various operational divisions.

The Toyota and Yamaha Division will be headed Mr. Joshua Anya, Deputy managing director and will oversee all Toyota business, Automark pre-owned vehicles as well as the Yamaha 2-wheel division.

Joshua will also be responsible for the body and paint shop.

The second one is the multi-brand and equipment division, it will be headed by Chris Ndala, Deputy Managing Director for multi brand and equipment division and will oversee multi-brand passenger car makes which includes Volkswagen, Suzuki and Mercedes Benz Passenger cars.

The equipment Division will also include the truck and bus business with Hino, Hyundai, Mercedes Benz and Sinotruk (HOWO).

Lastly is the Winpart and Autofast Division, it will be headed by Abderrahmane Mairi, Chief Operating Officer who will oversee the Value Parts as well as AUTOFAST quick service stations (in partnership with TOTAL Energies).

The back-office support teams such as finance, corporate support, Human Resources and customer relations have been consolidated to ensure the merged entity operates efficiently.

Speaking while announcing the new CFAO Motors business direction, Managing Director Arvinder Reel said, "This new business positioning greatly enhances our automotive value proposition in the market with the largest portfolio of mobility solutions across this wide segment of customers as well as the largest aftersales service network in the country."

The new entity has also expanded the local assembly offering by CFAO Motors Kenya, combining the assembly of Landcruiser 79 (LC79), Hilux pick-ups, Hiace and Hino trucks at Associated Vehicle Assembly (AVA) in Mombasa, and the VW Polo, Tiguan, Touareg, T-cross, Mercedes truck and buses and Hyundai trucks at Kenya Vehicle Manufacturers (KVM) at Thika, Kiambu County.

CFAO Motors Kenya now has the largest dealer network in the country at 36 with the combination of branches, dealerships and authorized service centres.

The merged entity will have a market share of nearly 30 percent, according to data from the Kenya Motor Vehicle Industry Association (KMIA).

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