Key insights
- Novelis has restarted production at its key New York facility, which supplies aluminum to Ford's F-150 trucks. This restart is positive for Ford, which had previously cut its profit forecast and flagged a significant charge due to supply bottlenecks caused by fires at the plant. The resumption of operations should alleviate supply chain pressures for Ford and potentially other automakers, contributing to a more stable production environment and easing concerns about automotive manufacturing costs.
June 10 (Reuters) - Novelis said on Wednesday it had restarted production at its Oswego, New York facility, a plant key to Ford’s F-150 pickup truck line, months after two fires halted operations.
The aluminum supplier said it was working closely with customers to ramp up supply.
While Novelis also supplies other automakers, including Stellantis and General Motors, Ford is a major consumer because its flagship F-series trucks largely use aluminum bodies.
The fires spurred supply bottlenecks, which led Ford to cut its 2025 profit forecast and flag a charge of up to $2 billion.
"Restarting the Oswego hot mill is an important step forward for our operations and, most importantly, for our customers," Novelis CEO Steve Fisher said on Wednesday.
Novelis had been leaning on plants in South Korea and Europe to make up for the downtime from the New York plant and support aluminum production.
In May, India’s Hindalco Industries, which owns Novelis, said the disruptions cost it roughly $437 million in the fourth-quarter.
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