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A devastating fire at a major aluminum plant in New York in mid-September is set to roil the U.S. auto industry and could even disrupt production of Ford (F) Motor's F-150 pickup trucks, according to a new Wall Street Journal report. 

The Novelis aluminum mill in Oswego, New York, suffered a fire on September 16 that destroyed the building housing the hot mill, rendering the plant inoperable until at least early 2026. This part of the facility is where sheet aluminum used by the auto industry is produced. 

The plant supplies about 40% of all aluminum sheet used by U.S. automakers, making it a very critical production node for America's auto industry. WSJ noted that Ford is the mill's largest customer and primarily uses the lightweight industrial metal for its top-selling and most profitable model, the F-150 pickup.

Shares of Ford in New York were hammered on the news by midday, down 7%, marking the worst intraday decline in eight months. 
 

WSJ cited industry analysts who warned the impacts of the mill's closure are widespread: 

Novelis produces more than 350,000 metric tons of sheet aluminum annually for the automotive industry, according to industry analysts. Around a dozen automakers get aluminum from Novelis, including Ford, Toyota, Hyundai, Volkswagen and Jeep maker Stellantis, according to a regulatory filing.

Kaustubh Chandorkar, an aluminum-industry analyst, said this incident "represents a serious question for the production of F-150 because that's the aluminum that comes out of Oswego." He pointed out that the automaker switched the F-150's exterior skin from steel to aluminum about a decade ago. 

"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 stated.

Novelis, owned by India's Hindalco Industries, is preparing to mitigate production losses in the U.S. by sourcing the metal from overseas plants in Europe, Brazil, and South Korea. However, a 50% tariff on imported aluminum complicates things.

This incident could trigger one of the most severe supply shocks for North American automakers in years. All eyes are on Ford's upcoming earnings call for more details on the situation, as well as on its Dearborn Truck Plant and Kansas City Assembly Plant, for any signs of slowing production that would only signal snarled supply chains. 

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