Ford slides after report fire at key supplier set to disrupt business for months
07/10/2025 18:34
Updates ** Shares of automaker Ford F.N slide 6.2% to $11.91 ** A fire that broke out at Novelis' New York aluminum plant last month will disrupt business at Ford and other automakers for months, Wall Street Journal reported on Monday ** Ford, the biggest user of the plant's aluminum, will likely tell investors about the potential impact when it announces its quarterly results later this month ** Oswego plant supplies sheet aluminium used for Ford's best-selling and highly profitable F-series trucks, two brokerages say ** Every 10,000 units of lost production, due to disruption, shaves $180 million off of Ford's EBIT, TD Cowen estimates ** Morningstar says the plant reportedly serves 40% of U.S. auto industry's aluminium needs and doesn't see other plants or suppliers making up for the disruption ** In a statement to Reuters on Monday, Novelis — owned by India's Hindalco HALC.NS — said it anticipates operations to restart at the Oswego facility's hot mill by Q1 of 2026 ** Auto parts supplier BorgWarner BWA.N and Lear Corp LEA.N down 4.6% and 2.3% respectively ** Including session's move, Ford's shares up 20.3% YTD (Reporting by Sanchayaita Roy and Nandan Mandayam in Bengaluru)