A severe aluminum shortage is disrupting production at major U.S. automakers, including Ford and Stellantis, following a fire at Novelis’ Oswego, New York plant. The facility, which supplied roughly 40% of the U.S. automotive aluminum sheet market, is expected to remain offline until early 2026.
Impact on Major Automakers
- Ford: Production of the bestselling F-150 and F-150 Lightning trucks has been severely impacted. The company anticipates a profit loss of up to $2 billion for the year and has adjusted its annual profit forecast to $6–6.5 billion, down from $6.5–7.5 billion. In response, Ford is adding 1,000 jobs in Michigan and Kentucky to boost truck production by over 50,000 units in 2026.
- Stellantis: Production at the Warren Truck Assembly Plant in Michigan has been halted due to aluminum shortages, affecting the manufacturing of Jeep Wagoneer and Grand Wagoneer SUVs. The plant is expected to remain shut down for several weeks.
Broader Industry Implications
The aluminum shortage is compounded by other supply chain issues, including a semiconductor chip crisis and geopolitical tensions affecting rare-earth material exports. These challenges have led to production halts at multiple plants, affecting thousands of workers and raising concerns about vehicle availability and pricing.
While the aluminum supply disruption is expected to be temporary, it underscores the vulnerability of the global automotive supply chain to unforeseen events and geopolitical factors.
