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37m ago

Analysts See Up to $1 Billion Hit to Ford From Novelis Plant Fire

High U.S. tariffs on imported aluminum complicate efforts to replace the lost domestic output.

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Overview

  • Novelis told Reuters much of its Oswego, New York, plant will be down until the first quarter of 2026, curbing sheet supply to Ford’s F-150 through year-end.
  • Evercore ISI projects a $500 million to $1 billion EBIT impact for Ford from months of constrained aluminum availability.
  • Ford’s shares fell roughly 6% to 7% on Tuesday after reports highlighted the scale of the disruption.
  • Ford said a dedicated team is working with Novelis and exploring alternative suppliers to limit production interruptions.
  • Novelis is redirecting material from plants in Europe, Brazil and South Korea, but 50% U.S. import tariffs raise costs and complicate substitution, with other automakers also assessing exposure.