General Motors Temporarily Halts Production in Egypt
Egypt has not been in a good economic place for a long time. The highly-import-dependent country has fallen into crisis after the uprising in 2011 caused the tourism industry and foreign investment to drop sharply.
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In response, the government is preaching fiscal responsibility, rationing dollars, and artificially raising the Egyptian pound’s value through dollar auctions, while at the same time the country’s dollar reserves have more than halved and the regime is literally rolling out the red carpet for the president’s motorcade on the way to open a new public housing development.
Unfortunately, this increasingly tumultuous and tense environment has made it difficult for car companies. This is especially true for General Motors at the moment, as a number of the car maker’s imports have been wrapped up in customs, leading the automaker to temporarily halt production.
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An unnamed source talking to Reuters summed up the situation rather concisely, saying “We can’t make a car without some of the parts.” The source did add some hope, though, adding that “there is still some leeway with the government and the banks to solve the issue.”
Hopefully this is true, as GM’s Egyptian operation accounts for 25% of the country’s vehicle production.
News Source: Reuters