CFAO Group has announced a merger with DT Dobie in a move that has seen the latter transfer its business assets to CFAO Motors Kenya effective April 1, 2023.
This means that the respective businesses of CFAO Motors Kenya and DT Dobie will now operate under one entity, CFAO Motors Kenya Limited, with the strategic partnership bringing together two well-established automotive dealers in Kenya.
According to the two companies, the internal restructuring project seeks to streamline and simplify the structure of CFAO's mobility business in Kenya by integrating the operations of CFAO Motors Kenya Limited and DT Dobie Kenya.
As part of this consolidation, the operations of CFAO will be managed under a single "CFAO" brand.
CFAO Motors Kenya Managing Director Arvinder Reel expressed his excitement about the new business direction and noted that they will now serve an even wider cross-section of customers in the country.
“As the preferred partners for mobility solutions in Kenya we serve a wide cross section of customers. 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," Reel said.
he added, "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."
Under the new structure, CFAO Motors Kenya will have three operational divisions:
- The Toyota & Yamaha Division will be headed by Joshua Anya, the Deputy Managing Director, and will oversee all Toyota business, Automark pre-owned vehicles, and Yamaha 2-wheel division. He will also be responsible for the new state-of-the-art, body and paint shop.
- The Multi-Brand and Equipment Division will be headed by Chris Ndala, the Deputy Managing Director, and will oversee multi-brand passenger car makes, which includes Volkswagen, Suzuki, and Mercedes Benz Passenger cars. The equipment Division will include all truck and bus businesses with Hino, Hyundai, Mercedes Benz, and Sinotruk (HOWO).
- The WINPART & AUTOFAST Division will be headed by Abderrahmane Mairi, the Chief Operating Officer, who will oversee the Value Parts as well as AUTOFAST quick service stations in partnership with TOTAL Energies.
Moreover, the new entity has 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) in Thika, Kiambu County.
The strategic merger has created for CFAO Kenya the largest dealer network in the country, with 36 branches, dealerships, and authorized service centers.
In 2016, Toyota Tsusho Corporation (TTC) acquired 100 percent shares in CFAO with TTC integrating all its African operations, including those previously under Toyota Kenya, under CFAO.
This acquisition aimed to create a significant automotive network in Africa by leveraging CFAO's established markets in West Africa with TTC's considerable presence in Eastern and Southern Africa.
TTC transferred the shares it directly held in CFAO Motors 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's reorganization project aims to consolidate and simplify the structure of its mobility business in Kenya, and it has successfully brought together two major players in the automotive industry in the country.
The new entity will offer a wide range of mobility solutions and services, with an extensive dealer network, making it the preferred partner for mobility solutions in Kenya.