Mobius Motors has announced plans to shut down its business operations in Kenya following a resolution passed by its shareholders on 5th August, 2024. This comes as revelations abound that the automaker is struggling with debts.
The Automaker’s Director Nicolas Guibert further issued a creditors’ voluntary insolvency notice. This is a notice issued to dissolve a company on its own motion following approval by shareholder either after achieving its objectives or after being insolvent (the liabilities of the company outweigh its assets) and the company is unable to pay off its debts. In such, the shareholders resolve to liquidate the Company’s assets and offset debts owed to its various creditors.
Further, the Company announced a meeting of its creditors to be held on 15th August, 2024 at its factory. “Notice is hereby given that a meeting of the creditors will be held on August 15, 2024, at 9 am at Mobius Factory (Sammer Africa, Mombasa/Enterprise Road Junction, Nairobi),” Director Nicolas Guibert said.
The Company has been involved in various tax disputes with the Kenya Revenue Authority and it is cited that the amounts that it owes KRA may have been the main trigger to its intended liquidation.
Mobius Motors
Mobius Motors was founded in 2011 by British businessman Joel Jackson. Its main objective was to design, manufacture, and sells vehicles specifically for the African market. The company’s flagship model is the Mobius 3, a rugged and versatile SUV that is designed to handle the challenging road conditions found in many parts of Africa.
The Company was under fire Motors for badge engineering, which is the practice of selling a vehicle that is manufactured by another company under a different name. In the case of Mobius, it is compared to another vehicle manufactured by a Chinese company called BAIC Group.
Mobius Motors defended its use of badge engineering, arguing that it allows the company to offer its vehicles at a lower price point. The company also argues that it has made significant changes to the Foton vehicles, including upgrading the engines, suspension, and interior.
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