How fracking is causing Chrysler minivans to sit on Detroit's riverfront
 

Filed under: Car Buying, Minivan/Van, Plants/Manufacturing, Chrysler, Dodge, Canada

http://o.aolcdn.com/dims-shared/dims...e-Caravan.jpeg

It's fascinating the way that one change to a complex system can have all sorts of unintended consequences. For instance, there are hundreds of new Chrysler Town and County and Dodge Grand Caravan minivans built in Windsor, Ontario, sitting in lots on the Detroit waterfront because of the energy boom in the Bakken oil field in the northern US and parts of Canada.

The huge amount of crude oil coming from these sites mostly use freight trains for transport, and that supply boom has resulted in a shortage of railcars to carry other goods. According to The Windsor Star, North American crude oil transport by train has gone from 9,500 carloads in 2008 to 434,032 carloads in 2013. Making matters worse, some North American rail infrastructure is still damaged because of this year's harsh winter, and that's slowing things down even further.

Chrysler admits to The Star that it has had some delivery delays due to the freight train shortage. In the meantime, it's using more trucks to deliver its vehicles. Trucking is a far less economical solution, partially because a train can carry so many more units at one time, but alternatives are slim. The Windsor plant alone has a deal for 33 trucks to distribute the minivans around Canada and the Midwestern US.How fracking is causing Chrysler minivans to sit on Detroit's riverfront originally appeared on Autoblog on Fri, 25 Apr 2014 16:28:00 EST. Please see our terms for use of feeds.



Permalink | Email this | Comments

More...