CMC Motors invests Sh1 billion in turnaround strategyDec 6th, 2011 | By MrJob N. Okemwa | Category: Media Release
CMC Motors Group has announced a new, far-reaching structural and cost-reduction strategy aimed at fast-tracking growth and boosting profitability in the company.
The key to this strategy, announced by the largest automotive distributors in East Africa, is a renewed commitment to quality and customer service.
Chief Executive William Lay said the operational changes include re-organisation of management structures and procurement policies, which will increase efficiency, optimise financial performance, and ensure compliance with local and international standards of corporate governance.
In the long term, he said, these measures will improve the sustained performance of the company, which started its new financial year on October 1.
CMC Motors is investing over Sh1 billion in a turn-around strategy that will also see the only listed automotive dealer in East Africa expand the capability and capacity of sales and service outlets across East Africa. The wide array of restructuring measures is expected to shore up shareholder value, and boosts the company’s growth strategy.
CMC Motors Group sells a number of global iconic brands, including Jaguar, Land Rover, Ford, Volkswagen, Suzuki, Maruti, Mazda, MAN and UD Trucks.
“Over the next 12 months CMC will launch a number of new products, including the new Range Rover Evoque, the all new Ford Ranger and Mazda pickups, and the Nissan UD ‘Quon’ prime mover. We are also planning to upgrade our showrooms and workshops with a customer-centric focus to improve Quality and the Total Customer Ownership Experience,” said Lay.
Efforts by CMC to spruce up its image comes at a time when the firm is under the microscope for a vicious boardroom wrangles, combined with the fact that trading in its shares has been suspended from the Nairobi Securities Exchange (NSE).