Business as usual at GM in Egypt
A source from GM in Egypt was quoted as saying that the U.S. company's Egyptian subsidiary would not be unaffected by General Motor's bankruptcy filing earlier this week. He added that none of the employees at the plant, located in 6 October City (48 km west of Cairo) or its service centers were laid off. He explained that a significant share of the capital in GM Egypt belongs to Egyptian and Arab investors. He expected further investment in the company in the upcoming months.
GM Egypt was founded in 1983 and started production two years later. GM has 31% interest and management responsibility in this joint venture company. Isuzu Motors holds 20%, and groups of Egyptian and Saudi private investors hold 33% and 16%, respectively.
The 6 October plant produces light commercial and medium pickup trucks with Chevrolet & Isuzu brand names as well as Opel passenger cars. During the first quarter of 2009 its production amounted to 13,000 units, say 30% of Egypt's total car production.