Novelis Aluminum Plant Fire Costs Ford Up to $2 Billion, Forces Production Adjustments

Ford Motor Company is facing significant financial impacts from a fire at the Novelis aluminum plant in Oswego, which supplies nearly 40% of the aluminum used by U.S. automakers. The fire, which damaged the plant's hot mill, is expected to cause a $1.5 to $2 billion hit to Ford's adjusted EBIT in 2025 and disrupt production of its key F-Series trucks, including the F-150 and F-150 Lightning EV. Ford has paused production on certain models and is working closely with Novelis and other suppliers to source aluminum and minimize disruptions, with efforts to recover production losses by increasing F-Series output by over 50,000 trucks in 2026. The reopening of the Novelis hot mill has been accelerated to the end of December 2025, ahead of the initial 2026 timeline, which could help mitigate some of the financial impacts. Ford's full-year adjusted EBIT guidance has been lowered to $6 billion to $6.5 billion, down from previous estimates, but the company aims to offset some losses in 2026 and maintain strong demand for its profitable truck lines. CEO Jim Farley emphasized intensive efforts to minimize the 2025 impact and recover production, including plans to create up to 1,000 jobs to boost output.