Ford has temporarily halted production of the Expedition and its twin, the Lincoln Navigator, after a massive fire crippled a major aluminum supplier in upstate New York.
According to an internal memo viewed by The Wall Street Journal, production of the Expedition and Navigator at Ford’s Kentucky Truck Plant will be suspended for at least a week. The play traces back to a September 16 blaze at the Novelis aluminum plant in Oswego, which destroyed the site’s hot mill. The plant produces 40 percent of the aluminum sheet used in U.S.-based auto production.
The decision to idle production of Ford’s big SUVs was made to protect Ford’s highly profitable F-Series trucks, which rely heavily on aluminum. Ford has reportedly shifted resources to keep F-150 and Super Duty production running, but United Auto Workers officials warned this week that even those lines may “run short” in the coming days.
As Novelis’s largest customer, Ford is hardest hit. The automaker is reportedly working to secure a fresh supply from the company’s overseas facilities in Europe, Brazil, and South Korea, though tariffs on imported aluminum are likely to complicate the sourcing efforts, or at least inflate the cost.
It’s thought the supplier’s plant could remain partially offline until next year. To conserve material, Ford also paused work at its Louisville Assembly Plant—home to the Escape and Lincoln Corsair, both of which will be ending production later this year. Meanwhile, the company’s Dearborn, Michigan, plant that builds the F-150 Lightning has also been idled temporarily.
Analysts estimate Ford could lose as much as $1 billion in operating profit if aluminum shortages halt F-Series output for an extended period. It’s thought that a 20 percent drop in truck sales during the fourth quarter could erase $800 million in income.
This comes as Ford absorbs $2 billion in tariff-related costs and eats $5 billion in EV losses this year.
[Images: Ford]
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