Ford Stock Declines After Second Fire at Aluminum Supplier Novelis
Ford Motor Company (NYSE:F) shares dropped nearly 3% in Thursday trading following a second fire at its key aluminum supplier, Novelis. The incident occurred in the cold mill of Novelis' facility, producing visible black smoke and drawing multiple fire departments. No injuries were reported, but the disruption compounds existing supply chain challenges from an earlier fire at the same plant.
Ford CFO Sherry House maintained that recovery efforts remain "on track," targeting a restart around Thanksgiving through early December. However, the company declined to specify how the new incident might impact timelines. Novelis similarly avoided commenting on potential delays to its rebuilding process.
The automotive giant's reliance on Novelis for aluminum—a critical material for lightweight vehicle manufacturing—leaves it vulnerable to prolonged disruptions. This comes as Ford navigates broader industry headwinds, including inflationary pressures and the transition to electric vehicles.
