On the Dash:
- Ford cut its 2025 earnings forecast after the Novelis aluminum plant fire caused major supply disruptions.
- The shortage impacted F-Series truck production, prompting Ford to add 1,000 jobs and increase output next year.
- The company expects $1 billion in earnings losses but plans to recover about half of this year’s 100,000 lost units.
Ford Motor beat Wall Street’s third-quarter earnings expectations but trimmed its 2025 financial outlook due to the lingering impact from the September fire at a Novelis aluminum plant. The automaker anticipates a $1 billion hit to its earnings due to the supply chain disruption.
The Oswego Novelis plant supplies roughly 40% of the aluminum sheet used in the U.S. auto industry, and the shortage has impacted production of Ford’s F-Series pickups, its most popular and profitable vehicles.
To offset the impact, Ford plans to recover much of the lost production by adding 1,000 jobs at its Michigan and Kentucky plants to support increased output. Once the supply chain stabilizes, the company expects to recoup approximately half of the 100,000 units lost this year.
CEO Jim Farley said Ford is working closely with Novelis and other suppliers to secure additional aluminum sources and minimize operational disruption.
For 2025, Ford now projects adjusted earnings before interest and taxes between $6 to $6.5 billion, down from prior guidance of $6.5 billion to $7.5 billion. Adjusted free cash flow is expected to fall to a range of $2 billion to $3 billion, down from earlier projections of $3.5 billion to $4.5 billion. Capital spending will remain steady at about $9 billion, while the company has lowered its expected tariff impact by $1 billion to $2 billion.
