WXYZ: John Taylor on cost of Ambassador Bridge protest

As attorneys argued for an injunction that would give police the ability to arrest protesters who block the Ambassador Bridge, they told a Canadian judge the blockade was proving to have a “catastrophic impact” economically already. They spoke about an impact on all consumers and the auto industry. Economists say it is costing automakers hundreds of millions of dollars. “Once it gets beyond a few days it becomes a very serious problem,” said John Taylor, associate professor of supply chain management at Wayne State University’s Mike Ilitch School of Business. Taylor says right now it could be written off as a short, one-time event by the auto industry, but if the government does not end it, it could change the auto industry in a way that weakens U.S. automakers globally. “It costs a lot of money to sit on inventory, storage, obsolescence when the model year ends financing the inventory. It can easily have a cost of 15% of the value of the inventory in operating expense…” said Taylor. “…Anything that impedes the flow across the border is basically a tax on the price of goods.” 

Full story on WXYZ

View all news stories