CMC Motors sends home 110 workers
NAIROBI, KENYA: Car seller CMC Motors has kicked out 110 workers in what directors say is a re-alignment of the business.
The automaker which had been one of the largest importers of motor vehicles says loss of franchise deals has affected sales making it hard to keep up with the wage bill.
“We lost Jaguar Land Rover, VW, and Ford, we are not getting revenue so cannot continue keeping people,” CMC director Joel Kibe said.
Mr Kibe said the company wants to focus on getting new brands and reorganising business and may ‘bring in young people who can add value’ in the changing market realities.
Just last year CMC laid off some 160 employees.
Fortunes have continued to dwindle for the vehicle dealer even after it delisted from the Nairobi Securities Exchange after being acquired by Dubai conglomerate Al Futtaim.
The change of ownership caused Ford to leave the franchise which was one of its major brands.
It lost its long-standing dealership for Land Rover, after Jaguar Land Rover (JLR) opted to use Thai firm RMA group.
The firm also lost the exclusive Volkswagen franchise to rival DT Dobie after the German brand decided to pull out over board wrangling that led to its delisting.
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The auto industry has witnessed a decline in volumes sold since 2015 from 19524 to 10722 sold last year.