N America auto output impacted by US-Canada bridge blockade

While a judge issued an order late Feb. 11 to have protestors clear the Ambassador Bridge as of 7:00 pm, major North American automakers had already reported production cuts due to parts shortages and logistical difficulties caused by the ongoing blockade at the US-Canada border.

If it continues, the protest could cause severe disruptions to an industry that is still recovering from a global semiconductor shortage, automaker Ford said Feb. 11.

"This interruption on the bridge hurts customers, auto workers, suppliers, communities and companies on both sides of the border that are already two years into parts shortages resulting from the global semiconductor issue, COVID and more," Ford spokesperson Kelli Felker said in a statement sent to S&P Global Platts. "We hope this situation is resolved quickly because it could have widespread impact on all automakers in the US and Canada."

The blockade began Feb. 7 and was organized by truck drivers protesting a Canadian vaccine mandate. The bridge connects Detroit, Michigan, and Windsor, Ontario, and represents a critical passage for North America's automobile parts supply chain.

Felker said Ford's Oakville and Windsor plants in Ontario were running at reduced capacity Feb. 11, and its Avon Lake, Ohio, assembly plant has halted operations due to the bridge blockade and associated parts shortage.

Stellantis told Platts it continues to make production adjustments as necessary in response to the bridge closure.

"Although the situation remains incredibly fluid, our teams are working around the clock to keep parts flowing into the plants to mitigate further disruptions," spokesperson Jodi Tinson said.

Honda said it had temporarily suspended manufacturing on one production line during the day shift at its Alliston, Ontario, plant Feb. 11, but its US operations were not yet affected.

"As this remains a fluid situation, we are monitoring the disruption of transportation between Canada and the US and will adjust production as necessary," spokesperson Chris Abbruzzese told Platts.

General Motors spokesperson Dan Flores said the company's Lansing Delta Township plant, which had canceled shifts earlier in the week, resumed production Feb. 11. The company's CAMI assembly plant in Ontario and facility in Flint, Michigan, were both impacted Feb. 11 and ended the first shift early.

Toyota said its manufacturing operations in Alabama, Kentucky and West Virginia have been impacted by the Ambassador Bridge blockade.

"We expect disruptions through the weekend, and we'll continue to make adjustments as needed," spokesperson Kelly Stefanich said in a statement sent to Platts. "While the situation is fluid and changes frequently, we do not anticipate any impact to employment at this time."

Steel, aluminum industry reaction

The disruptions at the Ambassador bridge are a "real issue," an aluminum trader told Platts Feb. 11, noting that conditions may worsen as US truckers are trying to organize a similar protest. The US Department of Homeland Security issued a warning this week that a similar protest could take place in the US, according to media reports.

The trader said he was hearing that some companies were thinking about getting the parts they need delivered by air instead of truck to avoid potential delays in transit between Canada and the US.

"[It's] expensive but so is shutting down a plant," the trader said. "All these things just make an already stressed logistics system more stressed and expensive."

While more expensive, the high cost of air freight could still make more sense than shutting down and losing days of production, according to the trader, noting the hit to auto production.

On the steel side, supply fundamentals in the Canadian flat-rolled market remain strong, however, the demand side of the equations is "evolving day-to-day" due to the situation with the truck driver protest and blocked bridge access, Michael McQuade, CEO of Algoma Steel, said Feb. 11 during the company's fiscal third quarter conference call. Algoma produces hot- and cold-rolled steel sheet and plate products at its fully integrated steelmaking facility in Sault Ste. Marie, Ontario.

Governments, auto groups push for resolution

The Automotive Parts Manufacturers' Association and Canadian Vehicle Manufacturers' Association filed a motion for an injunction Feb. 10 to open the Ambassador Bridge, with the city of Windsor joining in support of the motion, according to a statement from the APMA.

While a judge sided with the city of Windsor and APMA, ordering protestors to vacate the bridge by 7 p.m., it was not immediately clear when or if law enforcement officers would be sent in to remove the demonstrators, the AP reported.

Canadian Prime Minister Justin Trudeau and President Joe Biden discussed the ongoing illegal blockades taking place across Canada in a phone call Feb. 11, according to a readout of the call provided by Trudeau's office.

"The two leaders discussed the critical importance of resolving access to the Ambassador Bridge and other ports of entry as quickly as possible, given their role as vital bilateral trade corridors and how essential they are to the extensive interconnections between our two countries – and our peoples," the readout of the call states. "The Prime Minister underlined the coordination taking place between all orders of government in Canada in responding to these challenges, as well as between relevant authorities in Canada and the United States."

Trudeau and Biden have agreed to continue closely coordinating bilateral efforts to ensure their respective authorities "have all of the tools and information required to bring these illegal actions to an end as quickly as possible."