Categories: Canada

Nissan Kicks next-gen production delayed by theft at supplier

A theft of tooling from a provider in Mexico has pressured Nissan Motor Co. to delay the U.S. and Canadian launches of the next-generation Kicks, folks briefed on the matter advised Automotive Information.

Manufacturing of the subcompact crossover in Aguascalientes, Mexico, now will begin subsequent June, with deliveries following shortly, one of many folks mentioned.

That is the second delay of the redesigned Kicks, initially scheduled to start manufacturing in December this yr. The automobile’s failure to move crash security checks set the schedule again a month and a half, a supply mentioned.

The newest delay — which tacks on about 5 further months — is said to tooling that was stolen from a provider manufacturing facility in Mexico, the sources mentioned. They didn’t reveal the provider’s identification or say which Kicks half is affected.

Nissan confirmed the launch delay this week however didn’t say why.

“The arrival of the next-generation Kicks is delayed barely because of an surprising issue outdoors the corporate’s management,” spokesperson Brian Brockman mentioned. “Till then, we anticipate to have sturdy availability of the present mannequin, which continues to be probably the most widespread automobiles in its phase.”

Provider guide Laurie Harbour mentioned the theft of tooling and different manufacturing tools is uncommon however not unprecedented.

“I’ve had some purchasers who’ve had their instruments stolen off of vehicles and trains,” mentioned Harbour, CEO of Harbour Outcomes, which tracks exercise tendencies amongst tool-and-die and different small to midsize producers in North America.

Gear theft — even one involving a small automobile half — can maintain up manufacturing. “It solely takes one half to not be capable to construct the automotive,” Harbour mentioned.

If the Nissan provider can not get better the tooling, it have to be rebuilt. Harbour mentioned that may take three to 6 months, relying on the half and the instrument store’s accessible manufacturing capability.

The Kicks, which went on sale in 2018, is a key mannequin for Nissan because the automaker’s entry-price crossover.

Whereas the Kicks is not a quantity chief within the Untied States — Nissan offered 54,879 there final yr — it’s in Canada, the place the automaker offered 13,115.

It’s a important mannequin for the model and its retailers on each side of the border.

U.S. gross sales within the second quarter of 2023 rose 28 per cent over the prior yr because the Kicks’ manufacturing and availability strengthened. Nevertheless, Canadian gross sales have been down 15 per cent in the identical time interval.

In recent times, Nissan has consolidated its entry crossover lineup across the Kicks, ditching the equally marketed Juke and Rogue Sport (referred to as the Qashqai in Canada) crossovers.

Steve Chipman, head of Winnipeg’s Birchwood Automotive Group, referred to as Nissan’s small choices “a bit muddled.”

However, he mentioned the Kicks accounts for about 16 per cent of his Nissan retailer’s annual gross sales.

“Is it necessary? Yeah. We’ve got a bunch on backorder proper now,” Chipman mentioned. “We might promote extra if we might get them.”

He mentioned “the worth is true.”

However, he mentioned he “can’t management” what occurs alongside provide chains.

In the US, Nissan seller Chadi Moussa mentioned delays of the budget-priced Kicks harm Nissan’s competitiveness in an setting of excessive rates of interest.

“We’d like this newer-generation, high-tech mannequin,” mentioned Moussa, CEO of Carnamic, which operates two Nissan shops within the San Francisco Bay space.

“We’ve got nothing techie within the lineup aside from the Ariya [EV],” he mentioned. “Every thing else is 2, three years behind.”

Ivan Drury, insights director at Edmunds, mentioned the Kicks supplies one of many final inexpensive entry factors into the new-car market with a mean transaction value of US$25,000 in America.

The automobile begins at C$24,378, delivery included, in Canada.

The Kicks is a seller favourite as a result of it’s much less prone to sit round on the U.S. lot. Drury mentioned the newborn crossover’s turnover price of 23 days in the US is sort of half that of the Nissan model’s common.

The Kicks will get overhauled with a bigger engine and all-wheel drive for the 2025 mannequin.

In response to sellers who’ve seen the automobile, the brand new Kicks is boxier, rides larger and is extra like an SUV.

It options slimmer headlights and taillights and brings Nissan’s new grille design.

Future variations may obtain Nissan’s e-Energy serial-hybrid expertise, accessible on the Kicks in different markets.

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