Supply chain disruption
Ford faces $1 billion hit after fire at aluminium supplier Novelis’ New York plant impacts F-150 production
After a fire at aluminium rolling and recycling firm Novelis’ New York plant, Ford, which uses the plant’s aluminium, is expected to see production of its F-150 truck affected – something analysts claim could affect its bottom line by up to $1 billion.
The fire broke out at Novelis’ aluminium factory in Oswego, New York on September 16, with the company confirming in a statement that no one was injured in the fire. In its latest update on October 6, the firm said it was “working around the clock” to restore the facility’s hot mill, but doesn’t expect it to be back in operation until early 2026.
“We have activated Novelis’ global network of plants and are also partnering with industry peers to source material in order to help mitigate the gap in supply,” the statement noted.
Ford, as one of Novelis’ largest customers, stands to be substantially impacted by the factory’s inactivity. Since a redesign in 2015, its F-150 truck model has relied heavily on aluminium for parts such as its cab, box and doors. The F-150 Lightning electric truck, introduced in 2022, also uses an aluminium alloy body and bed.
“Novelis is one of several aluminium suppliers to Ford,” a Ford spokesperson said in a statement. “Since the fire nearly three weeks ago, Ford has been working closely with Novelis, and a full team is dedicated to addressing the situation and exploring all possible alternatives to minimise any potential disruptions."
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Analysts from Evercore ISI have estimated that the fallout from the fire could result in a $500m to $1 billion hit to Ford's bottom line. In its annual report published in May this year, Novelis also identified GM and Stellantis as some of its customers in North America. One Evercore ISI analyst suggested Ford would be the most affected by the incident, but remarked that the firm is “continuing to check knock-on effects for other manufacturers.
