South Africa firm starts hiring staff for Nissan Kenya
DT Dobie is set to lose the Nissan franchise after the vehicle manufacturer cut links with the dealer following its acquisition by rival Toyota. File
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AMH becomes the second foreign dealer to enter the Kenyan market this year after Dubai-based Al-Futtaim Group which bought out CMC Holdings for Sh7.5 billion earlier this year.
A South African firm has started hiring senior staff for its Nissan dealership business in Kenya, marking yet another step towards long-time distributor DT Dobie’s surrender of the franchise.
The new Nissan Dealer in Kenya, AMH Group, is set to launch its operations late next month. The company, a subsidiary of South Africa’s multinational Imperial Group, is seeking to recruit a general manager and managers for its finance, supply chain, workshop, sales & marketing units.
“Nissan will commence distribution with new partner Associated Motor Holdings (AMH) Group effective end of August,” said Nissan South Africa in an interview. The firm is also looking to recruit sales executives, a foreman, and technicians.
Associated Motor Holdings (AMH) was appointed the new distributor of Nissan in multiple African markets including Kenya, where it is replacing DT Dobie that will stop dealing in the brand next month.
The Renault-Nissan Alliance (RNA) — the franchise owners — severed ties with DT Dobie’s parent CFAO Group after it was bought out by competitor Toyota Group in December 2012.
“Nissan will continue to be represented without interruption in Kenya, and the full Nissan sales and service offering will be available to customers through our new partner AMH.”
The South African group said that AMH would partner with an existing dealer in Kenya to sell the Nissan brands. Several dealers including Simba Corporation and RMA Kenya were angling for the brand that accounted for eight per cent of total new vehicles in the country last year.
AMH becomes the second foreign dealer to enter the Kenyan market this year after Dubai-based Al-Futtaim Group which bought out CMC Holdings for Sh7.5 billion earlier this year. Nissan says it was opposed to the entry of Toyota in its distribution network through the acquisition of CFAO’s units in multiple African markets.
DT Dobie and CICA Motors were in December 2012 acquired by Toyota as part of a Sh274.4 billion Pan-African deal involving their parent firm CFAO. It is this deal that spooked RNA, prompting it to terminate its distributorship agreements with DT Dobie and start a search for new partners that led to the appointment of AMH.
“It is Nissan’s intention to grow our market share, not only in Kenya but throughout Africa. Nissan believes that this will not be possible in a distribution system that is controlled by a Toyota affiliated company.”
AMH is expected ride on a strong demand for Nissan pick-ups, vans and cars whose sales stood at 1,140 units last year.
Nissan is one of the biggest brands in the local pick-up segment, competing against Toyota and Isuzu that is sold by General Motors East Africa.
Besides losing Nissan, DT Dobie also suffered the termination of the Renault car franchise that has been taken over by a joint venture between Simba Corporation and Portugal-based Grupo Salvador Caetano SA.
Loss of the two brands leaves DT Dobie with Mercedes and Jeep brands but the firm’s parent CFAO said it is in talks to acquire new franchises to bolster its vehicle portfolio.
The entry of AMH, backed by its parent firm Imperial Group, is expected to raise competition in a market where cash-rich multinationals are edging out home-grown dealers.
