by Ford’s Plans
Recovery After the Fire
A fire at the Novelis aluminum plant disrupted the operations of several automakers, including Ford and its most popular model, the F-150. While this caused significant losses, the company plans to compensate for the losses next year by increasing truck output.
New Work Shifts and Personnel
The introduction of a third shift at the Dearborn Truck Plant will involve about 1,200 workers. They will be supported by over 90 new employees at Dearborn Stamping and an additional 80 workers at Dearborn Diversified Manufacturing.
Thanks to these measures, Ford plans to produce an additional over 45,000 F-150 pickups in 2026. They will be equipped with traditional powertrains, as the electric F-150 Lightning version did not meet expectations.
Production Priorities
The assembly of the electric pickup will be “indefinitely suspended” as the company prioritizes the production of models with gasoline and hybrid engines. The automaker noted that such trucks are “more profitable for Ford and use less aluminum”.
Employee Transfers
Due to the shutdown, hourly workers from the Rouge Electric Vehicle Center will be transferred to the neighboring Dearborn Truck Plant to work the third shift. It will also include new employees and some staff from other plants.
Investments in Production
To increase the output of the popular F-Series Super Duty, the automaker is investing $60 million in the Kentucky Truck Plant. These funds will help speed up the production line, allowing for one more truck to be produced per hour. This will add over 5,000 pickups per year.
Training and New Jobs
The funds will also be used to train new employees. The plant is expected to create over 100 new jobs.
Overall Production Growth
Overall, the automaker will increase production by over 50,000 units and create up to 1,000 new jobs. Ford’s Chief Operating Officer Kumar Galhotra stated:
“The people who keep our country running rely on America’s most popular vehicles – the F-Series trucks – and we are mobilizing our team to meet this demand.”
Financial Consequences of the Fire
The fire at the Novelis plant could cost Ford $1 billion
Novelis
The decision to ramp up production was made after Ford reported that “the consequences of the fire at the Novelis plant” could cost the company $1 billion in losses between 2025 and 2026.
Working with the Supplier
CEO Jim Farley has already visited the damaged plant and said:
“We are working intensively with Novelis and others to secure supplies of aluminum that can be processed in the operating cold rolling shop, while simultaneously restoring overall production at the plant.”
This allowed them to “minimize the impact in 2025 and restore production in 2026”.
Financial Expectations
Due to the consequences of the fire, Ford expects to finish the year with an adjusted operating profit (EBIT) of between $6 and $6.5 billion and adjusted free cash flow of between $2 and $3 billion.
Financial Results
Not all the news was bad: third-quarter revenue reached a record $50.5 billion, which is 9% more than last year, and net income was $2.4 billion. However, former President Trump’s customs tariffs cost the automaker approximately $700 million.
These strategic decisions underscore how critical the line of traditional pickups remains for Ford, providing stability for the company in a changing market. The shift towards hybrid and gasoline models may be a temporary solution until electric vehicle technologies become more efficient and affordable. At the same time, the production increase and investments in Kentucky indicate long-term faith in the heavy-duty truck market, which remains a primary source of income for the brand.
