Michigan jeep plant suspends production
Another large American automaker is also experiencing an aluminum shortage, with subsequent temporary plant shutdowns and furloughs.
A single production shift at Warren Truck Assembly Plant in Michigan was temporarily laid off because of a disruption in the line of aluminum supply, according to a United Auto Workers (UAW) source told FOX Business.
The plant produces some of Jeep’s most expensive and sought-after models, including the Wagoneer and Grand Wagoneer premium SUVs.
Jeep’s parent company, Stellantis, confirmed that the plant was idled the week of Oct. 13 and will remain offline for three weeks. The automaker expects to restart production Nov. 3.
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Another blow to the auto industry
This latest production stop comes just after Ford Motor Company also faced issues at its Kentucky Truck Plant due to the same shortage of aluminum.
Ford temporarily stopped producing Expedition and Lincoln Navigator SUVs for a short time, a UAW internal memo leaked to The Wall Street Journal said.
Both automakers are now suffering from the repercussions of a massive supply chain disruption caused by a fire in one of the nation’s biggest aluminum manufacturers, Novelis, in Oswego, New York.
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The fire that started it all
A blaze erupted at the Novelis Oswego plant on September 16 that compromised one of its most critical manufacturing facilities.
Novelis is among the biggest providers of car-grade aluminum, used to produce bodies, hoods, and other light components for fuel efficiency.
Novelis described a portion of the plant being affected by fire, but that the extent was serious enough to bring operations to a close for a number of months.
Novelis estimates repairs to be completed in finishing during the first quarter of fiscal 2026, so the shortage could last into next year.
The Oswego facility, as reported, supplies approximately 40% of the aluminum sheet used by the U.S. auto sector. That is nearly half of the country’s automakers depending upon this single source — the effect thereby being extensive.
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Stellantis responds to the fiasco
In a report to FOX Business, Stellantis confirmed the shutdown of production and said the company is working diligently to seek solutions.
“Due to a parts shortage, the Warren Truck Assembly Plant is temporarily idled,” the company explained. “We expect to resume production on November 3.”
Jeep Wagoneer and Grand Wagoneer are two of Stellantis’ top-selling luxury models, known for their prestige appearance and substantial cost. The company added it was evaluating alternative suppliers and adjusting schedules to limit disruption.
Ford faces same challenge
Ford also told FOX Business that it’s been working very closely with Novelis and other suppliers to minimize the effect of the shortage.
“A whole team is working on fixing the problem and exploring all available options to minimize any potential disruptions,” Ford said in a statement.
The blaze occurred at a challenging time for Ford, which had recently experienced other supply disruptions and short-term slowdowns at a number of plants. The automaker is also set to relocate its world headquarters for the first time in about 70 years — another significant change for the company.
What’s next for the auto industry?
Industry analysts warn that if the aluminum shortage persists, it could hinder production at several auto manufacturers aside from Stellantis and Ford.
Aluminum is a critical metal for new cars as it helps make autos lighter and more fuel-efficient. The current shortage could lead to postponed production, higher prices of autos, and lower stock in showrooms.
For now, Jeep’s Warren Truck Assembly Plant will come back online in early November, but the extended implications of the Novelis fire could be felt for months to come.
Automakers could be forced to reschedule production runs and find new suppliers until the aluminum supply returns to normal — all while they are attempting to keep up with strong consumer demand.
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