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Ford F-150 Lightning plant affected by aluminum fire-related closure, says union official

Ford Motor will stop production at its Dearborn, Michigan plant next week, which makes the F-150 Lightning electric pick-up. A union official says the change is due to the devastating fire that occurred at an aluminum supplier's New York factory.

According to analyst estimates, the fire that occurred on September 16 at Novelis's plant will disrupt Ford's F-150 production for several months and could cost $1 billion to its bottom line.

In a memo sent to workers, the Rouge Electric Vehicle Center will be closed next week. Nick Kottalis confirmed that the fire at the Dearborn Truck and REVC was the reason for the shutdown.

Ford refused to give specifics about any production changes.

Stocks of the automaker fell by about 6% Tuesday after news broke of the fire. Ford shares closed Wednesday's trading session 1.5% lower at $11.74.

Ford has been using an aluminum-based body for its F-150 pickup truck since more than 10 years ago to reduce vehicle weight. The company produces F-150s and Super Duty models in Kentucky, Michigan and Ohio. The automaker refused to comment on whether or not any changes in production were planned for these locations.

Novelis is among the many aluminum suppliers that Ford has. Ford has worked closely with Novelis since the fire almost three weeks ago. A full team is dedicated in exploring all options to minimize disruptions. In recent weeks, EV sales have soared as buyers rushed to get a good deal before the federal tax credit of $7,500 expired on September 30, causing a surge in EV purchases. Ford sold 10,000 F-150 Lightnings in the third quarter. The company calls it the most popular electric pickup truck in the U.S.

Ford CEO Jim Farley said recently that he expected EV sales would fall by about half of their record levels in August and September without the credit. (Reporting and editing by Matthew Lewis in Detroit, Nora Eckert)

(source: Reuters)