- A fire at an aluminum plant forces Ford to halt production of its F-150 Lightning electric pickup, possibly for months
- The fire could impact the production of other vehicles
A mid-September fire at an aluminum factory in New York will force Ford to pause production of its F-150 Lightning pickup. Reuters reports that the halt could last “months,” and “sap up to $1 billion from the automaker’s earnings.”
Kelley Blue Book data suggests that Ford dealers still have about a two-month supply of Lightnings on sales lots. That’s close to what dealers target in a normal market. But prices for the best-selling electric truck could rise as the supply dwindles and Ford can’t replace sold trucks.
The fire could limit the production of other vehicles. The Wall Street Journal reports, “The plant’s operator, Atlanta-based Novelis, supplies about 40% of the aluminum sheet used by the auto industry in the U.S., according to industry analysts. Novelis said a major portion of its Oswego, N.Y., plant has been knocked offline until early next year.”
Ford has other aluminum suppliers. In a statement, a spokesperson explained, “Novelis is one of several aluminum suppliers to Ford. 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.”
All F-Series trucks use aluminum for most body panels. In the aftermath of the fire, Ford prioritized the production of better-selling gasoline-powered trucks for the aluminum sheet it still receives.
No Other Cars Affected Yet, But the Problem Could Spread
- The supplier provides aluminum to many automakers
- So far, none have announced major disruptions
Other automakers may face similar issues. Yahoo Finance notes, “Several other major automakers, including Toyota Motor Corporation, Hyundai, Volkswagen, and Stellantis, source aluminum from Novelis, per a regulatory filing.”
No other automaker has announced a production pause. A Toyota spokesperson told Fox Business the company does not expect to pause any production, as its “needs can be filled through alternate suppliers.”
