Shares of Ford Motor Co. plunged more than 7% to $11.82 during early trading on Tuesday after reports that a fire at a New York aluminium plant operated by Novelis could disrupt production at several automakers, including Ford, for months.
According to The Wall Street Journal, the absence of output from the Oswego facility “is going to disrupt business at Ford Motor and other automakers for months to come.”
The Atlanta-based Novelis plant, one of the largest aluminium suppliers to the US automotive industry, provides roughly 40% of the aluminum sheet used by carmakers across the country.
Major blow to Ford’s F-150 which relies heavily on aluminium supplied by the plant
The setback is particularly severe for Ford, which is Novelis’ biggest customer.
The company’s top-selling F-150 pickup, a major profit generator, relies heavily on aluminium supplied by the Oswego plant.
Ford transitioned the F-150’s exterior from steel to aluminium nearly a decade ago to improve fuel efficiency and reduce vehicle weight.
“This represents a serious question for the production of F-150 because that’s the aluminium that comes out of Oswego,” said Kaustubh Chandorkar, an aluminium-industry analyst cited by the Wall Street Journal.
People familiar with the matter told the publication that Ford may warn investors about the potential implications of the supply disruption when it releases its third-quarter results later this month.
The company is scheduled to report earnings on October 23.
Fire halts production at Oswego facility until 2026
Novelis confirmed that a significant portion of its Oswego facility has been knocked offline until early 2026 following the September 16 fire.
The company, owned by India’s Hindalco Industries, updated investors on September 30 and again on October 6, noting that operations at the plant’s hot mill are expected to resume by the first quarter of 2026.
In a statement to the Journal, Ford said it is working closely with Novelis to mitigate the impact.
“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 minimize any potential disruptions.”
Ripple effect across the auto industry
Novelis produces over 350,000 metric tons of sheet aluminum annually for the automotive industry.
Alongside Ford, other major clients include Toyota, Hyundai, Volkswagen, and Jeep-maker Stellantis.
Toyota said its supply-chain team is “all over this,” adding that it is working with alternate suppliers to limit the fallout.
“We’re in pretty good shape, but not completely out of the woods,” a Toyota spokesperson said.
Stellantis also confirmed it is working to mitigate potential operational impacts, while Hyundai reported no immediate effect on its production.
Auto parts suppliers BorgWarner and Lear Corp saw their shares drop 4.6% and 2.3%, respectively, amid broader concerns about ripple effects across the auto supply chain.
Renewed supply chain worries
The disruption marks the latest in a string of supply chain challenges for the global auto industry, which has already grappled with semiconductor shortages, shifting trade policies under the Trump administration, and concerns about dependence on China for critical materials.
Analysts say the Novelis fire adds a fresh layer of uncertainty to an industry still recovering from years of logistical strain.
Reduced aluminum supply could tighten inventories and lift prices, but investors remain wary of production delays at key models like Ford’s F-150—long considered the heartbeat of the US automotive market.
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