In a recent article by Dennis DesRosiers, a prominent analyst in the Canadian auto industry, he pointed out that transportation costs and uncertainties associated with long delays at the Detroit-Windsor border were pushing manufacturers and product suppliers away. Local automobiles – a runoff already cleared in southwestern Ontario. and southeast Michigan. He added the following points and ideas:
Development follows the infrastructure
Vehicle assembly plants and parts plants move away from Detroit and Windsor to the Sarnia-Fort Erie Corridor
This change affects employment, population, tax revenues and economic vitality in southeastern Michigan and southwestern Ontario
The auto sector in Michigan and Canada is now more aligned with an east-west corridor starting in Sarnia and ending in Forth Erie, rather than a north-south corridor starting in Windsor and ending in east of Ontario.
As everyone knows, the auto industry makes manufacturing decisions several years in advance. As indicated by the automotive industry (for example, a CPSA report), increased transportation costs and uncertainty about the reliability of the Detroit / Windsor border crossing are a major drawback for the region. The industry has mitigated these disadvantages by changing the location of product manufacturing and the location of suppliers. The risk here is that these changes are growing at an ever faster pace given current market losses and the financial pressures facing the sector.
Car manufacturers and their suppliers use this corridor bypassing Windsor and Detroit. The corridor gives them access to suppliers in New York and central Ontario, and almost direct access to Chicago via I-69. In addition, CN's large-capacity rail tunnel in Port Huron facilitates the shipment of finished parts and vehicles.
An example of this move is the recent announcement of Toyota installing its new assembly plant for the mini RAV-4 SUV in Woodstock, Ontario, between London and Hamilton, all along this east-west corridor. . The location of this plant covers Toyota bets by allowing it to use Windsor / Detroit if the border is repaired