Canadian Railway Strike May Affect US Car Shipments

Canadian Railway Strike May Affect US Car Shipments

A strike at the Canadian Pacific Railway has hindered shipments of new vehicles from General Motors, Chrysler, Ford, Honda, and Toyota.

The strike became official when Teamsters Canada walked off the job after an agreement could not be reached during last minute negotiations. If the strike continues into next week, the Canadian Government is threatening to step in. Currently the Canadian Pacific has shut down all freight traffic across its 15,000 miles of track that crosses Canada and the U.S.

Canadian Pacific serves automotive assembly plants not only in Ontario but across the U.S. Midwest, handling a substantial amount of shipments for completed vehicles. The Pacific Railway strike could force certain automakers to shut down its assembly lines across the Ontario province further adding to a shortage scenario.

“Chrysler Group uses Canadian Pacific Railway for the delivery of parts and finished vehicles. We are actively working to mitigate any impact to our operations through alternative shipment methods. We encourage a quick resolution to this issue,” said Katie Hepler, spokeswoman for Chrysler.

Japanese automaker Honda has been affected by the strike, with its CRV model shipments being halted from its Alliston, Ontario plant.

[Source: The Detroit Bureau]