Ford faces fresh layoffs after second major fire hits key aluminium supplier

Ford has been hit by another round of layoffs after a second major fire in three months disrupted operations at a critical aluminium supplier in New York state, tightening pressure on already fragile US auto supply chains.

The latest fire erupted on 20 November in the hot-mill area of the Novelis plant in Oswego County, prompting a five-alarm response and the evacuation of more than 1,100 workers. The Detroit Free Press reported that no injuries were recorded, but the incident caused significant disruption to production.

Novelis and Ford issued statements saying parts of the plant remained operational and shipments would resume. However, the hot-mill unit was shut, aluminium sheet shipments were paused and supply to major customers — including Ford, General Motors and Stellantis — was temporarily halted, the Detroit Free Press reported.

The Oswego facility is one of the most important aluminium plants in the country, producing around 40% of the specialised automotive-grade aluminium sheet used across the US. Ford, the largest customer, is heavily exposed: its F-150 pickup relies on wide-gauge aluminium sourced almost entirely from the site.

The supply interruption forced Ford to idle assembly lines in Tennessee and Michigan for two days. Internal estimates viewed by the Free Press suggest the disruption could cost the automaker up to $1 billion in lost revenue this quarter, with losses potentially doubling if delays persist. An Evercore ISI analyst described the situation as a “critical material supply constraint” with the potential to disrupt North American production schedules for months.

The blaze was the second at the same facility within three months, following a major fire in September. The recurrence has intensified scrutiny of Novelis’ safety protocols, equipment reliability and fire-protection systems in an industry where extreme heat, molten metal and large-scale machinery pose inherent risks.

Workers at Ford plants expressed frustration on social media, criticising what they characterised as unsafe production pressures and raising concerns over contingency measures, including reports of aluminium coils being flown in from Europe to maintain F-Series output. The Detroit Free Press has previously reported on workers’ safety worries following incidents at other auto facilities facing supply shortages.

The broader automotive sector has been grappling with the effects of “lean” production systems, consolidation and limited redundancy in specialist material supply. Only a handful of US facilities are capable of producing automotive-grade aluminium sheet, leaving manufacturers vulnerable to single-point failures.

Ford has not disclosed how many workers are affected by the current round of layoffs. The company continues to assess the depth of the supply disruption as Novelis works to restore full operations at the Oswego plant.

Further volatility across the supply chain in the coming months, warning that the incident underscores structural risks in US manufacturing networks and the need for greater resilience as the industry navigates constrained material supplies and rising operational pressures.