Protests by truckers in Canada could have a major impact on trade between the United States and Canada and are now impacting the automotive industry.
What Happened: On Wednesday, a Ford Motor Co (NYSE:F) factory shut down due to a blockade on the Ambassador Bridge. Other auto companies are bracing for the impact continued protests and blockades could have on the auto industry in Detroit.
Protestors blocked the Ambassador Bridge, which connects Canada (Windsor, Ontario) to Detroit. The blockade made traffic unable to move into Canada via the bridge.
The protests are against COVID-19 restrictions in Canada, with a large focus on restrictions for truck drivers.
Related Link: Recap: Ford Motor Q4 Earnings
Why It’s Important: The Ambassador Bridge carries 25% of all trade between Canada and the U.S.
Ford shut down an engine plant in Windsor on Wednesday and reduced the schedule for an assembly plant in Oakville, Ontario. The plants were impacted by parts shortages.
“This interruption on the Detroit-Windsor bridge hurts customers, auto workers, suppliers, communities and companies on both sides of the border,” Ford said in a statement.
Ford said it is hoping the situation is resolved quickly and warned that continued protests could have a “widespread impact on all automakers in the U.S. and Canada.
Other automakers have begun to feel the impact along with Ford.
General Motors (NYSE:GM) cancelled a second shift at a Lansing SUV factory on Wednesday. The company is planning to run shifts as normal on Thursday.
Toyota Motor (NYSE:TM) could see a large impact later in the week due to parts shortages. The company said that three Canadian plants will not be able to manufacture anything the rest of this week. Toyota did not attribute the slowdown to the blockade, instead citing supply chain, weather and pandemic-related challenges.
“Our teams are working diligently to minimize the impact on production,” Toyota said.
Stellantis (NYSE:STLA) cut shifts short earlier in the week at a Windsor plant.
The White House said it continues to monitor the protests and the impact it could have on U.S. automotive production and trade.
“We are watching this very closely,” White House spokesperson Jen Psaki said. “The blockade poses a risk to supply chains for the auto industry because the bridge is a key conduit for motor vehicles, components and parts, and delays risk disrupting auto production.”
Police have not removed protestors at the Ambassador Bridge due to fears of adding to the situation, but said they will not let the protests go on “for a prolonged period of time.”
Truckers wanting to avoid the blockade have to drive 70 miles north to the Blue Water Bridge, which connects Michigan to Canada via the city of Port Huron. The Blue Water Bridge is seeing a 4 1/2-hour delay, according to reports.
The auto industry could be heavily impacted by the protests and blockades, with the supply chain already being a big story and headwind for the sector.
