Ford to suffer $1B hit from brutal factory fire at – Business News
Ford will possible suffer as a lot as a $1 billion hit to its earnings from a devastating fire at a key provider’s New York factory final month — with F-150 vehicles anticipated to bear the brunt of the catastrophe, analysts warned on Wednesday.
A late-night fire on Sept. 16 leveled elements of a Novelis aluminum factory in Oswego, New York, and is probably going to keep most of the factory down by way of early 2026.
While the Novelis factory acts as a provider for a lot of automakers, Ford is anticipated to be hit the toughest. It’s the most important consumer of the plant, since its fashionable F-150 vehicles are made with a primarily aluminum physique.
A late-night fire on Sept. 16 leveled elements of a Novelis aluminum factory in Oswego, New York. Andia/Universal Images Group by way of Getty Images
“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,” a Ford spokesperson instructed The Post in a assertion.
The spokesperson added that Novelis is one of a number of aluminum suppliers that works with the automaker.
A union official at the plant stated Wednesday that Ford is pausing manufacturing subsequent week at its Dearborn, Mich., plant, which manufactures the F-150 electric pickup, due to the fire, in accordance to Reuters.
The automaker stated its provide of the steel for its F-150 vehicles – the best-selling vehicle within the US – can be impacted by way of the tip of the 12 months.
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“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,” Evercore ISI’s Chris McNally wrote in a be aware Wednesday, projecting a $500 million to $1 billion dent to Ford’s earnings.
Shares within the automaker fell 1.4% on Wednesday, and are down 4.7% over the previous 5 days.
It’s simply the newest problem going through American automakers, that are already struggling to swallow increased prices due to auto, aluminum and metal tariffs.
Ford CEO Jim Farley speaks during a Ford occasion in September. Getty Images
Novelis produces more than 350,000 metric tons of sheet aluminum every year for automakers together with Ford, Toyota, Hyundai, Volkswagen and Jeep maker Stellantis, in accordance to the Wall Street Journal.
US auto companies are additionally going through a international semiconductor scarcity; work stoppages from the pandemic and a 2023 union strike; and a heavy reliance on China for rare-earth magnets typically utilized in electric automobiles.
The Sept. 16 fire at the Novelis plant collapsed half of the factory’s roof and required 26 space fire departments to extinguish, the Oswego County fire officers instructed the Journal.
About 175 firefighters fought the flames, working nearly fully from ladder vehicles, because the building was at risk of collapsing.
The trigger of the fire stays below investigation, in accordance to the Journal.
