Four months on, Novelis outage continues to weigh on Ford trucks

The key supplier for Ford Motor, Novelis, which is also a subsidiary of Hindalco, has not yet started with the aluminium production, which has been halted for the past four months due to the fire that threw a wrench in the metal supply chain for Ford's high-margin pickup trucks.

September: The first fire breakout

In September, at the firm's New York facility, a major fire broke out, due to which Ford had to lower its profit forecast for 2025. The car company informed that the fire may lead to a loss of production of up to 100 thousand F-Series pickup trucks by the end of 2025. 

Given the severity of the situation, the car firm predicted that this setback could cost them as much as USD 2 billion, but it has also developed an action plan to cover about half of that expense. On the other hand, the aluminium production company deems that it will be back to its full production capacity by the end of December.

Also read: Emilio Braghi to assume his new role as the COO of Novelis

November: The second fire breakout

In late November, the second fire broke out, during which Ford stated that this incident would not impact its profit forecast in 2025. However, it is still not clear for how long the showdown at the facility’s hot mill will last and its impact can be seen directly in the fourth quarter or the first quarter.

The present state of affairs

A Ford spokesperson mentioned that the company plans to provide an update when it releases its fourth-quarter earnings on February 10. Meanwhile, a representative from Novelis pointed to a statement made in November, emphasising that the company “will continue to tap into alternative sources, including its global network of plants and industry partners, to lessen the impact.”

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Ford executives have indicated that the automaker is obtaining aluminium from other Novelis facilities. Analysts believe that Ford’s F-Series lineup, which comprises the F-150 and the larger Super Duty trucks, is the company’s best-selling range and contributes significantly to its global profits. Although Novelis provides supplies to several automakers, Ford remains a crucial customer, as its trucks primarily feature aluminium bodies.

In the prior year, the automaker announced plans to push the production of its F-150 and Super Duty trucks by over 50 thousand vehicles in 2026 at its Michigan and Kentucky plants. The main focus is to recover some of the output, which was being lost due to the Novelis fire. In light of a hefty USD 19.5 billion writedown on its electric vehicle programs, the car company has also decided to halt production of the F-150 Lightning electric truck, which depended on aluminium from Novelis.

In a recent filing for financial aid from Oswego County in New York, the aluminium production company has revealed that the estimated cost to repair the damaged areas and equipment would reach around USD 255 million.

To know more about the global primary aluminium industry 2026 outlook, book the report “Global ALuminium Industry Outlook 2026".