Stellantis’ in-house trucking unit, FCA Transport, is reportedly bound by a toll contract that requires its drivers to use the older Ambassador Bridge rather than the newly opened Gordie Howe International Bridge. According to a post by UAW Local 212, this contract offers a fixed monthly toll payment, which is significantly cheaper than paying per crossing.
Contract With Ambassador Bridge Limits Use of New Crossing
The union representing FCA Transport drivers in the U.S. stated the company currently pays a flat rate of about US$160,000 per month under a contract with the Ambassador Bridge. Before this arrangement, toll costs exceeded US$400,000 monthly when paying per crossing.
This flat-rate deal could save the company nearly US$2.9 million annually, assuming the contract and figures are accurate. The contract reportedly requires a 60-day notice before termination if the company wants to switch crossings to the Gordie Howe Bridge.
The union warned drivers they could face disciplinary action or customs issues if they use the Gordie Howe Bridge without the company’s consent.
Significance of the Gordie Howe International Bridge
The Gordie Howe International Bridge, that links Windsor, Ontario, to Detroit, Michigan, was built to provide a wider, faster crossing than the nearly century-old Ambassador Bridge. Canada invested Cdn$6.4 billion to construct the new six-lane bridge designed to ease traffic, improve trade flow, and support the automotive manufacturing supply chain.
Industry groups estimate the new bridge could save truckers about 850,000 hours in wait times annually and lower trucking costs by Cdn$20,000 to Cdn$100,000 per month depending on fleet size.
Ongoing Discussions and Company Comments
Unifor Local 444, representing FCA Transport drivers in Canada, confirmed drivers continue to use the Ambassador Bridge and said discussions with Stellantis management are underway, with more details expected soon.
Stellantis declined to comment directly on the union’s post but emphasized the Gordie Howe Bridge’s importance for cross-border operations. The company said it plans to use the new crossing to improve its “just-in-time” manufacturing logistics, without addressing the toll contract specifics.
Context Around the Bridge’s Opening
The union stated its directive to avoid the Gordie Howe Bridge is “not about politics,” despite the controversy surrounding the bridge’s approval. The project faced political challenges, including former U.S. President Donald Trump’s objections over toll revenue sharing, which delayed final agreements.
FCA Transport plays a vital role in Stellantis’ supply chain with over 700 employees handling thousands of deliveries daily across the U.S.-Canada border. The current toll agreement helps control crossing costs but also restricts the use of the newer bridge designed to modernize trade routes in the region.
Further updates are anticipated as Stellantis and the unions continue negotiations.
Source: autonews.com