The fallout from the Novelis aluminum mill fire in Oswego, New York, which shut the plant down until early next year, continues to worsen for Ford Motor. The automaker is now preparing to scale back production of at least five models amid a tightening aluminum supply crunch.
The Wall Street Journal reports that production of its three-row SUVs, the Expedition and Lincoln Navigator, at the Kentucky Truck Plant has been reduced due to “difficulties with aluminum supply.”
Here’s more from WSJ:
To preserve aluminum supply, Ford also stopped work at its other assembly plant in Louisville, Ky., last week, according to a UAW official, resuming this week with only one of two shifts operating. That plant is in the final months of producing the Escape SUV and its luxury cousin, the Lincoln Corsair. The Escape will end production in December, the official said, as Ford prepares to build a new electric pickup at the Louisville plant. Ford this week is also idling its Dearborn, Mich., plant that produces its current electric pickup, the F-150 Lightning, because of the aluminum issue, Reuters reported last week.
AutoForecast Solutions analyst pointed out, “They’re focusing all their energy on making sure all their F-150s get built.”
However, a United Auto Workers member at the Kentucky plant wrote in a Facebook post that producing the Super Duty pickups “may run short today, tonight, and possibly over the next few shifts.”
Some context about the Novelis fire at its Oswego plant: A Sept. 16 fire destroyed the building housing the hot mill, rendering the plant inoperable until at least early 2026. This part of the facility is where sheet aluminum used by the auto industry is produced. It supplies 40% of all aluminum sheet used by U.S. automakers, making it a very critical production node for America’s auto industry. WSJ noted that Ford is the mill’s largest customer.
Last week, Evercore ISI analyst Chris McNally wrote in a note to clients, “We believe this is largely a Ford issue, at this time being, although we are continuing to check knock-on effects for [Stellantis] and Toyota as well,” adding, the disruption at the Dearborn plant will generate a $500 million to $1 billion hit to Ford’s EBIT.
Ford shares have dropped about 10% on the Oswego fire and the resulting production cuts or halts of five vehicle lines. Year-to-date, shares are up 16.5%.
While entirely unrelated, it’s worth noting that Ford’s production woes come at a time when cracks have begun to appear in the subprime auto credit markets.
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