Manufacturers in Canada who belong to the highly integrated auto industry have started to feel the impacts of the General Motors strike in the United States as workers protested for another day.
It was stated by the GM Canada in the afternoon of Tuesday that nearly half of the production at its Assembly Plant which is located in Oshawa has had an effect of the strike, which has caused disruption in the supply chains for the leading automaker and there is an anticipation of continuity on Wednesday.
It is being expected that the auto suppliers of Canada, which export nearly 18 billion dollars every year in parts to the United States, will also feel the impact of nearly 48 thousand unionized workers in the United States stop working on the job and go on strikes, Dennis DesRosiers, who is an industry analyst told.
DesRosier stated that in Canada there is an immediate impact on the suppliers, the Magnas of the world supply GM plants in the US, and he had suspicions that as early as a day before they were being given instructions of stopping production and to wait till there is a settlement of the strike.
International Spokesperson of Magna, Scott Worden stated that the firm was in a ‘wait and watch’ mode and carries on monitoring the situation, however, refused to outline the impacts thus far.
He said through an email that even though Magna supplies GM on numerous programs worldwide, it would be not mature to make any comment on the likely impact to our current operations.
President of the Automotive Parts Manufacturers Association, Flavio Volpe, passed a statement which said that member firms he has talked to apparently avoided major changes thus far, however, that it is not afar.