Canadian autoworkers are helping Ford and GM race the tariff clock

The rapidly approaching deadline for the tariffs going into effect has prompted Canada’s auto worker union to lend a hand in helping the Detroit automakers mitigate the damage of the levies.  

The details: Members of the Auto Council for Unifor—which represents Canadian autoworkers—is helping Ford $F ( ▼ 1.16% ) and General Motors $GM ( ▼ 0.81% ) move engines and vehicles to the U.S. before the 25% tariffs on goods from Canada kick into effect on April 2.  The motivating factor is to save auto jobs on both sides of the border.  

• The collaborative effort with Ford involves transporting as many engines as Canada’s union can help move from Ford’s Essex Engine and Windsor Engine plants in Windsor, Ontario to the U.S.—which includes engines for one of Ford’s best-selling vehicles, the F-Series.   

• Union Local 200 John D’Agnolo said the union is also helping to move vehicles across the border for GM, which operates the Oshawa Assembly plant, near Toronto, where the heavy- and light-duty Chevrolet Silverado pickups are built. 

Why it matters: The collaborative effort between Canada’s auto union and GM and Ford to move automotive parts and vehicles across the border should enable both automakers to keep the pricing of their vehicles relatively stable in the short term.   

Between the lines: The additional costs associated with the 25% tariffs could have a huge impact on the Detroit 3 automaker’s operational expenditures.

• According to D’Agnolo, a single truck full of 45 Ford engines used in the popular Super Duty pickup would cost Ford about $70,000 in tariffs. 

• The report notes that a single truck stocked with 66 of the 5.0-liter engines used in the automaker’s other F-Series trucks could cost the Ford up to $80,000 to bring into the U.S.

Bottom line: This last-minute cross-border push shows just how serious the stakes are—and how collaboration may soften the blow—at least for now.

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