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Border Protest Fuels Parts Shortage For Automakers

(CBS DETROIT) - A demonstration at the Ambassador Bridge enters its fourth day and the protest is having a ripple effect on the auto-industry as another disruption in the supply chain fuels a massive parts shortage.

The distribution of goods is at a halt for companies relying on supplies from the Canadian border.

Truckers giving push back to a vaccine mandate are in return pushing a stop to production at assembly plants.

Automakers say the interruption hurts customers, workers, suppliers and communities on both sides of the border.

Center for Automotive Research President and C.E.O. Carla Bailo says auto companies forced to shut down from the blockade are losing millions of dollars.

"Well I think we learned that we definitely need to do more risk mitigation and future-proof our supply chains and think deeply about those critical elements that need to be manufactured in this country," Bailo said.

Ford officials say its engine plant in Windsor reopened Thursday and its assembly plant in Oakville, near Toronto, scaled back production.

A statement released by the automaker says Ford has been dealing with a parts shortage for two years and the protest could have a widespread impact on all automakers in the U.S. and Canada.

"There are engine assembly plants in Canada, those are always just-in-time parts and those are going to start crimping the ability to manufacture here in the U.S. because you can not make a car without an engine," Bailo explained.

GM cancelled second shift at its Lansing Delta Assembly Plant and is working to mitigate potential impacts on production and operations.

"So it really depends on how long it last," Bailo said.

"There are also you know, your smaller tiers and all the way down to tier-x. The mom and pop shops, if they're depending on raw materials, or something like that coming from Canada, it could began to impact in many different areas."

Bailo says auto companies can use other sources to ship smaller parts, like air freight, but that option is roughly five times more than road transport.

 

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