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A recent fire at the Novelis aluminum plant in Scriba is expected to significantly impact Ford Motor Company's finances, potentially reducing its profits by $1 billion. The fire, which occurred on September 16, damaged the plant's hot mill, a crucial part of the aluminum sheet production process. Novelis supplies nearly 40% of the aluminum used by U.S. automakers, with Ford being one of its largest customers.
Ford's F-Series trucks, including the popular F-150, heavily rely on aluminum for their construction. As a result, the automaker has already paused production of the all-electric F-150 Lightning and two large SUVs, the Ford Expedition and Lincoln Navigator, due to the aluminum shortage. According to Syracuse.com, Ford plans to mitigate at least $1 billion of the Novelis-related earnings impact in 2026.
The fire forced over 20 fire departments to respond, and although no one was injured, it took four hours to extinguish. Novelis has accelerated the reopening of the hot mill to the end of December, earlier than initially planned for the first quarter of 2026. Meanwhile, Ford is working with Novelis and other suppliers to source aluminum and minimize disruptions.
The Car and Driver reports that Ford has reduced its F-Series production at the Dearborn Truck Assembly facility by 55% and is exploring alternative aluminum sources, including imports, which could incur tariffs. The company aims to increase F-150 and F-Series Super Duty production by over 50,000 trucks in 2026 to recover from the current production losses.
Industry experts warn that the aluminum shortage could lead to further production halts if alternative sources are not secured quickly. Ford's focus remains on maintaining F-Series production due to its profitability and market demand, even if it means pausing other vehicle lines. The situation highlights the challenges automakers face when supply chain disruptions occur, especially with critical materials like aluminum.