CMC loses Ford dealership to Salvador Caetano, axe 169 workers

By Phyllis MUCHOKI

Auto dealer, CMC Motors Group will no longer represent Ford, Suzuki, and Mazda in Kenya, instead the car brand Ford is moving to Salvador Caetano and Suzuki will now be sold by CFAO – formerly Toyota Kenya Ltd.

Ford Motor Company is an American multinational automobile manufacturer headquartered in Michigan and Japan’s Mazda Motor Corp and Suzuki Motor Corp.

As a result, CMC Holdings will lay off 169 workers after ending three lucrative dealerships for global brands of passenger vehicles, citing poor local sales.

Last week the car dealer announced a major shift in its business strategy, which will see the company abandon its trademark mass-market vehicle segment and will instead focus on agriculture mechanization as it seeks to boost dwindling revenues.

The firm’s officials said the move was necessitated by the rapid changes in the auto market – one of the sectors that is still reeling from the aftermath of Covid-19, as well the European war leading to production slowdowns and supply-chain disruptions.

“We thoroughly studied the situation and took the decisive step to shift focus. It wasn’t an easy choice for us, as we have been very proud to represent global automotive brands such as Ford, Suzuki, and Mazda, and we will certainly ensure our customers continue to experience high standards of service during the transition to the new partners,” read the statement from the company.

CMC motors is the local distributor of agricultural equipment and farm machinery firm, New Holland – a global brand in the field of agricultural machinery including agricultural tractors, combines, grape harvesters, hay balers among others.

New Holland will continue to provide the same service, products and parts offerings currently received, and will be there every step of the way to support its customers through its ongoing partnership with CMC.

There is no change concerning the availability of New Holland’s products in this region.

Özkan Eren, New Holland Business Director, Middle East & Africa stated “New Holland has built a strong presence in Kenya, Tanzania, and Uganda through our long-term partnership with CMC.”