Blockade of Ambassador Bridge Costs Auto Industry Millions
Total losses add up to $300 million, with a $155 million hit to automakers and $145 million in lost direct wages.

When protests forced the shutdown of the Ambassador Bridge last week in Canada, the event cost the automotive industry millions and left everyone wondering who will cover the cost of this crisis.
Direct industry losses amounted to $300 million. The auto industry suffered a $155 million hit and there were $145 million in lost direct wages due to plant shutdowns, according consulting firm Anderson Economic Group LLC.
The bridge, situated between Detroit and Windsor, reopened Sunday after a six-day shutdown, but experts predict the impacts will linger for months along with the threat of future closures. Canada's Prime Minister Justin Trudeau invoked emergency powers Monday to stop citizen protests over excessive COVID-19 measures.
"Within hours of the trade disruption at the Ambassador and Blue Water bridges, we observed shortages and then slowdowns at assembly plants," Patrick Anderson, CEO of Anderson Economic Group, said in a news release. "Only some of that lost production can be made up given the tightness of the auto industry's supply chain right now, so these are real losses to the men and women working in this industry."
The latest event is another force majeure to hit the industry during a period of unprecedented supply chain disruption, say legal experts, who say force majeure — an unforeseeable circumstance preventing a contract from being filled — is the likely defense for suppliers unable to move parts across the bridge.
Contract disputes between automakers and suppliers are becoming all too common with supply disruptions in the last two years.
Some suppliers flew parts back and forth during the Ambassador Bridge closure, but air freight can cost 10 times more than moving parts on trucks. The measures kept assembly lines running but OEMs and suppliers will eventually have to sort out who pays the bill.
Recently supply chain disruptions have exposed cracks in the supply chain and have given companies have a better idea how to handle them, said Michael Brady, co-chair of the automotive industry group at Warner Norcross + Judd, told Automotive News.
"It's a different cause, but the same type of interruption in the supply chain," Brady said. "Whether it's the bridge getting shut down or the ports being jammed, it all results in parts not getting to customers in time. I think if this would have happened pre-COVID, you would have seen a much worse reaction from everybody in the supply chain. Everybody knows how to deal with these things better."
Who bears the cost will come down to supplier-customer relationships and contract terms. Brady advises automakers take a wait-and-see approach while making they understand their contractual rights.
Originally posted on Auto Dealer Today
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →