Photo: Google Creative Commons (Fair Use)
The chaos and mild pandemonium that was the scene of the Ambassador bridge blockade between Detroit and Windsor, Ontario, may be over for now. But the effects of the stand-off at the Canadien-American border are just starting to heal for the North American auto industry.
Honda, Toyota, General Motors, Ford, Stellantis Group, and Hyundai, among other brands, use the industrial cradle of Southern Ontario to bring high-quality passenger cars and commercial trucks to market from Canada all the way to Mexico. That was until a mob of angry protestors blocked off one of the major arteries between Ontario and the U.S. State of Michigan.
The cause of all this commotion? New regulations in the cargo trucking industry that Canadian truckers argue are infringing on their civil liberties. The more passionate and vocal among this group dealt a serious blow to the American-Canadian automotive coalition, with many factories having to suspend production on the grounds of not being able to get them to dealerships over the Ambassador bridge.
After two years on the brink of complete collapse thanks to a global health crisis and subsequent microchip shortage, automakers likely didn't see Canadian citizens as the main cause of their headaches in 2022. Companies like the Japanese Toyota and Korean Hyundai groups are perhaps the companies most affected by the blockade and all the surrounding craziness. Toyota recently told the press that it had axed global production for the year by 500,0000 units due to chip shortages.
The Japanese leviathan's prided itself on its "just in time," or JYT production philosophy for their automobiles. Where-in they drastically reduce the amount of overhead at the production level. But such practices can only go so far when vehicles sit in parking lots collecting leaves and snow, waiting for microchips that may or may not arrive before the next model year.
Is Toyota preparing to leave this production space? Probably not, but changes are coming. Rest assured of that. What these changes remain to be seen.
The cause of all this commotion? New regulations in the cargo trucking industry that Canadian truckers argue are infringing on their civil liberties. The more passionate and vocal among this group dealt a serious blow to the American-Canadian automotive coalition, with many factories having to suspend production on the grounds of not being able to get them to dealerships over the Ambassador bridge.
After two years on the brink of complete collapse thanks to a global health crisis and subsequent microchip shortage, automakers likely didn't see Canadian citizens as the main cause of their headaches in 2022. Companies like the Japanese Toyota and Korean Hyundai groups are perhaps the companies most affected by the blockade and all the surrounding craziness. Toyota recently told the press that it had axed global production for the year by 500,0000 units due to chip shortages.
The Japanese leviathan's prided itself on its "just in time," or JYT production philosophy for their automobiles. Where-in they drastically reduce the amount of overhead at the production level. But such practices can only go so far when vehicles sit in parking lots collecting leaves and snow, waiting for microchips that may or may not arrive before the next model year.
Is Toyota preparing to leave this production space? Probably not, but changes are coming. Rest assured of that. What these changes remain to be seen.
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