Ford Shares Slump 5% After Reports Of Fire At Aluminum Supplier Plant: Retail Dismisses The Dip As ‘Short-Lived’

Shares of Ford Motor Co. (F) slipped 6% on Tuesday morning following reports of a late-night fire at Novelis’ Oswego, New York, aluminum plant.

According to a report by The Wall Street Journal, a large portion of the Oswego plant was knocked offline until early next year after a September 16 blaze destroyed its hot mill. This section produces aluminum for vehicles. Ford, the plant’s biggest customer, relies heavily on Oswego material for the aluminum-bodied F-150, its most profitable model.

Ford said it sources aluminum from multiple suppliers and has been working closely with Novelis since the fire. “A full team is dedicated to addressing the situation and exploring all possible alternatives to minimize any potential disruptions,” the company said in a statement to The WSJ.

The automaker is reportedly expected to disclose the effects of the outage in its earnings report later this month.

Ford shares witnessed a 166% rise in retail user message count over the past 24 hours, as of Tuesday morning. On Stocktwits, retail sentiment around F stock stayed within the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

A Stocktwits user dismissed the stock dip as “short-lived.”

A more pessimistic user, however, opined that the shares will fall more “little by little.”

Novelis, a unit of India’s Hindalco Industries, produces over 350,000 metric tons of aluminum annually for automakers such as Ford, Toyota, Hyundai, Volkswagen, and Stellantis. The company said it’s reallocating some production to its European, Brazilian, and South Korean plants, though high U.S. import tariffs could increase costs.

Meanwhile, the F-series is Ford’s best-selling vehicle and truck. In the second quarter, the company sold 207,732 units of the truck in the U.S. In fact, the company has sold over 600,000 units of the truck year-to-date in the U.S., outpacing its nearest competitor by an estimated 170,000 units.

Ford stock is up 20% this year and approximately 14% over the past 12 months. 

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