Welcome to today's edition of the Daily 5.
Every few years, Canadians remind the U.S. auto industry just how much it depends on them. The reminders aren't happy talk. They usually come in the form of labor or logistics disruptions.
The latest episode stems from contract negotiations failing at two Canadian railroads, which early today locked out 9,000 union workers, bringing freight and passenger trains to a halt. A quick resolution is unlikely because the pro-labor Canadian government is not expected to force the unions back to work.
Our coverage today goes into the potential damage that a prolonged disruption could have on the North American auto industry. An analysis by the Anderson Economic Group says a weeklong stoppage could cost about $1 billion, with automakers and suppliers facing major disruptions.
About two and a half years ago, Canadian protests over pandemic restrictions shut down the Ambassador Bridge on the U.S.-Canada border between Detroit and Windsor for a week. Several North American assembly plants idled production.
Yet again the industry learned a hard lesson in the fragility of its supply and logistics chains, but help is on the way. The massive $4.7 billion Gordie Howe International Bridge is slated to open at the Detroit-Windsor border in September 2025, vastly improving the flow of goods between the U.S. and Canada.
Canada's railroads and their union should have a deal by then, right?
Looking ahead to Friday, we will publish an in-depth look at life-saving automatic emergency braking systems. They aren't perfect. Our story will explain what happens when things go wrong.
That's it for now. Have a great rest of your day.
