General Motors has temporarily suspended its operations in Egypt due a currency crisis, a company source told Reuters.
Import-dependent Egypt has been in economic crisis since the 2011 uprising and subsequent political turmoil drove foreign investors and tourists away. Dollar reserves have more than halved to 16.4 billion dollars since then. “The entire sector has a currency crisis. We stopped production temporarily as of yesterday until we can clear the imports held up in customs,” an inside source told Reuters this week. “There is still some leeway with the government and the banks to solve the issue.” General Motors’ Egypt operation includes assembling trucks and cars and the Detroit-based automaker makes around 25 percent of country’s vehicles.
Separately, GM recently announced it opened the doors to the all-new GM Powertrain Performance and Racing Center, facility designed to enhance the development processes for the company’s diverse racing engine programs. The new 111,420-square-foot facility is connected to GM’s Global Powertrain Engineering Center and is part of a 200-million-dollar investment at the Pontiac, Michigan, campus. It relocates the Racing center from Wixom, Michigan to the new campus, bringing together under one roof an additional team of nearly 100 engine builders, engineers and other support staff. The Performance and Racing team is responsible for developing engines for NASCAR, NHRA, IndyCar, IMSA and other racing series.