Ford has fully recovered from multiple fires at aluminum supplier Novelis that cost it an estimated $2 billion and hurt F-Series output over the past year. August brought Ford's best Super Duty production since 2006, but F-Series sales still trail last year's pace through September.
Ford has fully recovered from a supplier crisis that hit its most important product line. According to Ford CEO Jim Farley, the automaker is now free of the production overhang caused by multiple fires at aluminum supplier Novelis, which had cut F-Series output by tens of thousands of vehicles over the past year.
Production climbs back to pre-crisis levels
August was Ford's best month for Super Duty production since March 2006, and F-150 output reached its highest level since August 2024. Ford has been building F-150s with aluminum from Novelis's New York plant for about a month, after sourcing specialized aluminum overseas while the fires disrupted supply.
Novelis supplies about 40% of the aluminum sheeting used in the U.S. auto industry, and Ford is its single largest customer. The overseas sourcing had added tariff costs on top of the lost production.
Billions lost, ground still to make up
The supply disruption was originally expected to cost Ford a net $2 billion, and the company hopes to recover roughly 50,000 units of production this year. F-Series sales plunged 16% in the first quarter as the shortage ceded market share to rivals General Motors and Stellantis.
Through September, F-Series sales remained 9.5% lower than the prior year. Stellantis's Ram 1500 surged 73% higher in the third quarter and is up 41% year-to-date in the U.S.
Why the F-Series matters so much
Nearly a decade ago, Morgan Stanley analyst Adam Jonas estimated that the F-Series, if it were a stand-alone business, would be worth 135% of Ford's total market cap. The franchise still carries outsized margins for Ford, even as its Model e electric vehicle division keeps logging billions in losses.
The F-Series doesn't sell well outside the U.S., and cheaper Chinese vehicles are pressuring Ford in other overseas markets. As a result, the F-Series' value to Ford's North American profit engine may be more important than ever.
Source: The Motley Fool
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