Ford Motor minimize its revenue steering on Thursday, citing fallout from a hearth at a vital aluminum provider that may crimp manufacturing of a few of its most profitable automobiles by way of the tip of the yr.
A September hearth on the Novelis manufacturing unit in Oswego, NY, that provides materials for F-150 vans will price the automaker about $1.5 billion to $2 billion earlier than taxes and curiosity, Ford stated, including it expects to offset about $1 billion of that subsequent yr.
Ford CEO Jim Farley stated in a press release that he had been on web site working with Novelis to supply aluminum from components of the plant that had been nonetheless operational. “We've made substantial progress in a short while to reduce the affect in 2025 and get well manufacturing in 2026,” Farley stated.
Ford launched outcomes after the inventory market closed, and shares of the automaker elevated about 4% after the bell.
Novelis stated on Thursday it deliberate to restart operations on the affected a part of the plant by the tip of December, an acceleration from its earlier projection of resuming by the primary quarter of 2026.
Ford posted income of $50.5 billion for the third quarter, up 9% from a yr earlier. It reported earnings per share for the interval of 45 cents, beating LSEG analysts' expectation of 36 cents.
The Detroit Three automaker minimize its annual outlook for the second time this yr, to earnings earlier than curiosity and taxes of $6.0 billion to $6.5 billion, from $6.5 billion to $7.5 billion.
Ford beforehand lowered its steering due to tariffs.
Reduction is on the horizon for US automakers, after President Trump authorised an order to broaden credit for US auto and engine manufacturing, permitting firms to obtain a credit score equal to three.75% of the instructed retail worth for US assembled automobiles by way of 2030 to offset import tariffs on components.
“I'd prefer to thank President Trump and his group,” Farley stated on a name with analysts.
Ford stated in July that Trump's levies would price as much as $3 billion this yr, $1 billion of which it deliberate to offset. On Thursday, executives stated it now faces a $1 billion internet tariff affect due to the aid introduced final week. Executives stated they anticipated the same internet affect from the levies in 2026.
Ford Chief Monetary Officer Sherry Home stated it will have raised steering had it not been for the Novelis hearth. The automaker is buying aluminum from different Novelis services, executives stated.
Novelis provides different automakers, together with Toyota and Stellantis, however Ford is a serious shopper as a result of its F-150 vans use a primarily aluminum physique. Basic Motors on Tuesday stated it has been “minimally impacted” by the hearth.
Ford stated it anticipated to lose as much as 100,000 items of manufacturing by way of the tip of the yr, and that it will enhance manufacturing of its F-150 and SuperDuty vans by 50,000 automobiles at crops in Michigan and Kentucky subsequent yr to recoup half of these losses. Manufacturing of the F-150 Lightning EV truck will likely be paused indefinitely to deal with extra worthwhile gasoline variations, the corporate stated.
The auto {industry} faces a number of potential disruptions to international provide chains past fallout from the Novelis hearth. China lately tightened controls over exports of battery supplies utilized in electrical automobiles, in addition to uncommon earths, that are used extensively inside vehicles.
Individually, an intellectual-property dispute between the Netherlands and China over laptop chips has auto-industry teams warning of potential manufacturing unit disruptions.
Gross sales of gasoline-fueled vans and SUVs proceed to energy Detroit's earnings, as Ford and GM have each walked again their electrical car plans to deal with the normal core merchandise.
Automakers' EV gross sales surged within the third quarter as buyers rushed to reap the benefits of a $7,500 tax credit score that went away on the finish of September. Analysts and automotive executives venture that EV demand will drop off by way of the tip of the yr, however slowly regain floor in 2026.
