US Car Shipments Affected by Canadian Railway Strike image

The U.S. car shipments from Chrysler, Ford, GM, Toyota and Honda may be affected by a strike at the Canadian Pacific Railway.

Due to the fact that an agreement was not reached during last minute negotiations, the strike was made official with Teamsters Canada walking off the job. Canadian Pacific has closed all freight traffic connecting Canada and the U.S. on a 15,000-miles track. If the strike doesn’t end until next week, the Canadian Government is ready to step in.

The Canadian Pacific serves car plants in Ontario and across the U.S. Midwest, offering numerous shipments for completed vehicles. If the Pacific Railway strike goes on, certain automakers could be forced to close assembly plants across Ontario, which will only bring 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.

Honda has already been affected by the strike, the shipments of the CRV model being halted from the Allison, Ontario assembly line.