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'Spillover effect is huge': Automakers scaling back production amid border blockades

'Spillover effect is huge': Automakers scaling back production amid border blockades

CTV
Friday, February 11, 2022 03:06:59 AM UTC

Automakers in Canada scaled back production and braced for continued disruptions as trucker blockades at U.S. border crossings worsen an industry-wide parts shortage.

Shipping delays are rippling through the economy amid the ongoing protests that have idled Canada-bound traffic on the Ambassador Bridge linking Detroit and Windsor, Ont.

Thousands of workers have seen their hours cut back as carmakers curb capacity, a situation having a knock-on effect on local suppliers and the broader economy.

"It's not only an automotive problem, it's a huge economic problem for Canada as a whole," said Dino Chiodo, auto director with Unifor, the largest auto sector union in the country, on Thursday.

"You've got wage losses that can't be made up, and then independent parts suppliers shutting down ... the spillover effect is huge."

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