Layoffs as DT Dobie, CFAO Merge Operations

Car dealer DT Dobie has merged its operations with CFAO Motors, the seller of Toyota vehicles in Kenya, in a new restructuring effort. The merger has resulted in an unspecified number of job losses at the company.

Despite having the same ownership, DT Dobie and CFAO Motors have been operating independently. Toyota in 2017 took full control of DT Dobie and CICA Motors after buying all the shares in their parent company CFAO Group. Toyota had in December 2012 acquired a 97.81 per cent stake in CFAO for Ksh243.7 billion and in 2017 snapped up the remaining shares for Ksh5.4 billion.

The merged entity will operate as CFAO Motors. CFAO will serve as the corporate head office and sell vehicles including Prado SUVs and Yamaha motorcycles.

In a statement, the company noted; “Now [one of] the largest automotive distributorship in the market, CFAO Motors Kenya brings together the expertise, resources and capabilities of these two respected brands, to provide a wider range of high-quality vehicles and services to customers in Kenya.”

“CFAO Motors will now offer an even more diverse range of premium vehicles, including luxury cars, SUVs, trucks and commercial vehicles, from leading global brands.”

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A review of the the dealership network is to be undertaken in coming months. The dealership network includes branches spread across the country.

Based on data from the Kenya Motor Vehicle Industry Association (KMIA), the merged operation will control around 30% of the market, making it the second-largest dealer by unit sales behind Isuzu East Africa, which boasts of a 44.7 percent market share.

Formerly Toyota Kenya, CFAO Motors sold 3,084 units last year, translating to a 23.1 market share. DT Dobie sold 772 units, controlling a 5.8 percent market share.

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