Cooper Motors Corporation (CMC) Holdings, the parent company of CMC (Uganda) Limited has announced its decision to gradually wind down operations in Uganda, Kenya and Tanzania, in full compliance with local regulations and distributorship agreements.
Cooper Motors was acquired by the Al-Futtaim Group in 2014 and has other trading subsidiaries owned by CMC Holdings Ltd including: CMC Motors Group Limited (Kenya) Ltd. Hughes Motors (Tanzania) Ltd, Kenya Vehicle Manufacturers Ltd (33% Shareholding).
The motor company was a leading player in the East African motor industry with exclusive distribution of New Holland tractors with an extensive range of farming implements from New Holland, Nardi and Fieldking.
The company said the decision followed a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation and rising operational costs.
Over the 40 years, CMC Motors Group was involved in supporting East Africa’s agricultural sector through the delivery of quality service, mechanisation solutions, and steadfast support to its customers, however, despite the restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided the company with a sustainable path forward.
“The company is committed to supporting its employees during this transition and will ensure a smooth and orderly wind-down in adherence to all relevant agreements and regulations,”CMC said in a statement.
In 2023, CMC exited the exclusive distribution of Ford, Mazda, and Suzuki brands. The motor company revealed in a notice that its exit sale of personal vehicles was a result of a major shift in business strategy towards agricultural mechanization as well as the two-wheeler sectors.