General Motors Co. announced today its Oshawa assembly plant, which makes pickup trucks that are mostly exported to the US, will cut down to two shifts from three, because of the “evolving trade environment.”
Adding to the ongoing uncertainty for many businesses, this announcement has sent another chill through the Ontario trucking industry.
“The production and assembly of autos and their components are Ontario’s top export, and the majority are moved by truck across the Canada-U.S. border,” said OTA President and CEO Stephen Laskowski. “Today’s announcement means trucking fleets serving that sector will be looking to keep their business operations and drivers busy in a marketplace with very few options.”
The Ontario trucking industry moves the bulk of the Canada-US trade, meaning the tariff war, shifting marketplaces, and reduced demand for trucking services, has hit the Ontario trucking industry particularly hard.
According to industry surveys, an increasing number of fleets have laid off workers or are strongly considering this option.
“Premier Ford has introduced measures for our businesses that have allowed them to hold on to cash, which has been very helpful. But more action could be required, especially for sectors like ours, which are severely exposed to the effects of this trade war.
Laskowski pointed to toll relief options at international bridges between Ontario and the U.S. as an effective measure to provide trucking fleets relief and improve their immediate cash flow.
“The cost of bridge tolls per week for a truck engaged in the auto sector could be several thousand dollars per week, and given the ongoing economic climate, these costs simply can’t be absorbed by customers and the supply chain,” he said.
OTA is recommending to Premier Ford and cabinet members that similar toll relief measures promised by Prime Minister Carney to help reduce the cost of ferry services in Atlantic Canada and those transporting goods and services be strongly considered in Ontario as well.
OTA has written Premier Ford and key cabinet members on the recommended relief action.