CMC sinks into deeper woes as it loses Land Rover

By Jackson Okoth

Troubles at auto dealer CMC Motors have deepened further.

This follows a move by Jaguar Land Rover (JLR) to move its dealership of the Land Rover, Range Rover, and Jaguar models to a new holder, RMA Motors Kenya Ltd.

 “There is no pending matter in court and therefore we have all the legal rights to transfer the franchise to a new player. We are putting up a state of the art service centre that will be ready by June 1,” said Isaiah Siegel, an officer at Land Rover Kenya.

world wide deal

Land Rover has been the flagship of CMC Motors, contributing upwards of 30 per cent of its overall sales figures.

“We are planning to introduce four new models into his market including the Range Rover super charged, the Range Rover autobiography, the Range Rover HSE and the Range Rover plain,” observed Siegel.

In a statement, Land Rover Kenya attested about uncertainty that has persisted for several months over Jaguar LandRover (JLR) brands representation in Kenya.

“The new partner for Jaguar Land Rover is RMA Motors Kenya, a partner that is responsible for Land Rover in over 60 countries worldwide,” said Land Rover Kenya.

With RMA, JLR is looking forward to introducing new vehicles ever seen in the history of these great brands-starting with the al new range Range Rover and the Jaguar F-type. In parallel, RMA will be making significant investments in terms of people, premises and parts inventory to ensure the best possible service levels are maintained for owners of these two brands.

“RMA Kenya and Jaguar Land Rover will be sharing their plans for launch of new the new operation over the coming days and weeks,” said the statement.

Observers maintain that it is the internal wrangles at CMC board that has prompted JLR to pull out of its deal with the firm.

While CMC holdings had gone to court to stop Jaguar Land Rover from terminating its dealership in the Land Rover, Range Rover, and Jaguar brands in Kenya, the court threw out this application.

 It said the dispute could only be settled in an English court, which had jurisdiction over the matter.

“I do not find the prayers sought by the applicants to fall within the category of interim measures this court can grant. The upshot of my ruling, therefore, is that the applicant’s notice of motion application is not merited,” ruled Justice Jackline Kamau.

Last month, data from Kenya Motor Industry shows that CMC sold 98 units last month, comprising of 1,038 per cent of the market