Aluminum Plant Fire Halts US Auto Supply Chains, Impacts Ford, Toyota Production

A fire at the Novelis aluminum plant in Oswego, New York, which supplies nearly 40% of the aluminum sheet used by U.S. automakers, has caused significant supply chain disruptions, particularly affecting Ford's production of its top-selling F-Series pickups. The plant will remain offline until early next year, prompting Ford to work closely with Novelis and explore alternatives to minimize production interruptions, though some disruption is expected. This incident has led to a notable drop in Ford's stock by about 6-7%, reflecting investor concerns over operational resilience and supply vulnerabilities. Other automakers like Toyota, Stellantis, Hyundai, and General Motors also rely on the plant and are monitoring the situation, with some seeking ways to mitigate the impact. Novelis is attempting to compensate through overseas operations, but U.S. tariffs on imported aluminum complicate these efforts. The event underscores the fragility of automotive supply chains amid ongoing global challenges such as trade tensions and prior disruptions.