Auto Industry Calls for Quick Resolution to Disruption of Service at CP Rail

TORONTO, May 28, 2012 /CNW/ - Today, the Association of International Automobile Manufacturers of Canada (AIAMC) and the Canadian Vehicle Manufacturers' Association (CVMA) urged all Members of Parliament to support a timely resolution to the work stoppage currently ongoing at CP Rail.

CP Rail plays a vital role in the shipment of both parts and components into Ontario vehicle manufacturing facilities, as well as a significant role in the shipment and distribution of finished vehicles from ports of entry to local dealerships across the country. The work stoppage has caused delay and frustration for thousands of customers with respect to the delivery of the new vehicle they have purchased, and has cost the Canadian economy millions of dollars in lost productivity.

"It is time to work together for our collective interests in minimizing the negative impact the work stoppage at CP Rail will have on the Canadian economy, said Mark Nantais, President of the CVMA. At present, he said, "CVMA member companies are incurring additional costs in the range of $100,000 a day in additional logistics costs just for outbound vehicle shipments. Each could expect potential losses in unrecoverable revenue amounting to as much as $1.5M per hour at production plants should a shutdown occur due to disruptions in their just-in-time supply chains".

"While this labour situation was not entirely unanticipated, and our members have worked to minimize the impact on their customers, contingency plans are costly and add an unnecessary burden on all CP customers. Resolution of the current labour dispute at CP Rail is in everyone's interest," said David Adams, President of the Association of International Automobile Manufacturers of Canada.

The integrated North American auto industry is presently experiencing a positive but fragile economic recovery and the ongoing disruption of CP Rail service will have negative consequences for vehicle production facilities on both sides of the border.

Mark A. Nantais
President
Canadian Vehicle Manufacturers' Association
Tel:  [phone]

David C. Adams
President
Association of International Automobile Manufacturers of Canada
Tel:  [phone]