The Baltimore Bridge Collapse Forces Ford and GM To Divert Shipments

The 1.6-mile bridge structure came crashing down on Monday nigt, taking cars and people into the very cold water below. Search and recovery still continue.

The collapse of the Francis Scott Key Bridge in Baltimore is also another hit that the American automotive sector received following the pandemic and the chip shortage. The information has been confirmed by John Lawler, Chief Financial Officer for Ford Motor Company, in a conversation with Bloomberg TV.

"It is a large port with a lot of flow through it, so it is going to have an impact,” Lawler stated. The carmaker will have to divert parts to other ports along the East Coast or elsewhere in the country in order to reduce the impact.

Lawler also explains that carmakers have gained experience in disruptions over the past few years and will use it to figure out the best solution this time as well.

According to the New York Times, one port that automakers might divert cars to is the Port of Brunswick in Georgia, which is currently going through an expansion process.

General Motors is also hard at work to cancel the effects of the incident and will reroute vehicle shipments that would usually come through the Port of Baltimore. The port is closed and will remain so until the authorities complete the search and rescue operations for those who fell off the bridge on the night of the crash.

Four people are still missing and are presumed dead. Three days after the incident, aerial footage shows the cargo ship still stuck in the metal structure of the bridge.

Baltimore is the number 1 automobile port in the US, according to John Bozzella, CEO of the Alliance for Automotive Innovation, which represents Ford, GM, Toyota, Volkswagen, and several more major carmakers in the United States.

More than 847,000 cars and light trucks transited the port in 2023. Major European carmakers such as BMW, Mercedes-Benz, and Volkswagen have facilities in the port area to be able to handle vehicle shipments on site with ease.

Data compiled by Bloomberg shows that Mazda is the automaker with the largest number of car imports into the US through Baltimore by dollar value. Volkswagen, Mercedes-Benz, JLR, and Subaru follow suit.

BMW and Volkswagen are two of the lucky automakers. The terminal where they operate is located along the seaboard, just outside the bridge, while others have it inland. Last year, there were approximately 100,000 Volkswagen-branded cars processed and shipped through Baltimore for dealers in the Northeast and Mid-Atlantic regions of the United States.

Meanwhile, a representative of Mercedes-Benz claims the carmaker has several options available within its flexible chain network, said in a statement following the collapse. The supply for its plant in Tuscaloosa, Alabama, has not been affected.

Bozzella says that AAI will remain in touch with federal officials in order to help them understand the impact this situation has on the automotive operations in the area.

Pete Buttigieg, the US transportation secretary, predicted serious disruptions in the entire supply chain in the country. He claims that the path back to normalcy will not be easy, quick, and inexpensive.