Nissan Kicks production delayed by theft at tooling supplier

A theft of tooling from a supplier in Mexico has forced Nissan Motor Co. to delay the U.S. launch of the next-generation Kicks, people briefed on the matter told Automotive News, a sister publication of Plastics News.

Production of the subcompact crossover in Aguascalientes, Mexico, now will start in June 2024, with U.S. deliveries following shortly, one of the people said.

This is the second delay of the redesigned Kicks, originally scheduled to begin production in December. The vehicle's failure to pass crash safety tests set the schedule back a month and a half, a source said.

The latest delay — which tacks on about five additional months — is related to tooling that was stolen from a supplier factory in Mexico, the sources said. They did not reveal the supplier's identity or say which Kicks part is affected.

Nissan confirmed the launch delay this week but did not say why.

"The arrival of the next-generation Kicks is delayed slightly due to an unexpected factor outside the company's control," spokesperson Brian Brockman said. "Until then, we expect to have strong availability of the current model, which continues to be one of the most popular vehicles in its segment."

Nissan dealer Chadi Moussa said delays of the budget-priced Kicks hurt Nissan's competitiveness in an environment of high interest rates.

"We need this newer-generation, high-tech model," said Moussa, CEO of Carnamic, which operates two Nissan stores in the San Francisco Bay area.

"We have nothing techie in the lineup except for the Ariya [EV]," he said. "Everything else is two, three years behind."

Supplier consultant Laurie Harbour said the theft of tooling and other manufacturing equipment is rare but not unheard of.

"I've had some clients who have had their tools stolen off of trucks and trains," said Harbour, CEO of Harbour Results Inc., which tracks activity trends among tool-and-die and other small to midsize manufacturers in North America.

Equipment theft — even one involving a small vehicle part — can hold up production. "It only takes one part to not be able to build the car," Harbour said.

If the Nissan supplier cannot recover the tooling, it must be rebuilt. Harbour said that can take three to six months, depending on the part and the tool shop's available production capacity.

The Kicks, which went on sale in the U.S. in 2018, is a key model for Nissan as the automaker's entry-price crossover.

The subcompact segment was the third-fastest-growing crossover group in the first half of the year, up 13 percent from a year ago.

While the Kicks isn't a volume leader — Nissan sold 54,879 in the U.S. last year — it is a vital model for the brand and its retailers. Sales in the second quarter of 2023 rose 28 percent over the prior year as the Kicks' production and availability strengthened.

In recent years, Nissan has consolidated its entry crossover lineup around the Kicks, ditching the similarly marketed Juke and Rogue Sport crossovers.

Ivan Drury, insights director at Edmunds, said the Kicks provides one of the last affordable entry points into the new-car market with an average transaction price of $25,000.

The Kicks is a dealer favorite because it is less likely to sit around on the lot. Drury said the baby crossover's turnover rate of 23 days is nearly half that of the Nissan brand's average.

The Kicks is also more likely to be financed, making it a profit engine for dealers.

Drury said just 5 percent of Kicks customers lease vs. 20 percent for the average Nissan model.

"Dealers can make more on F&I and aftermarket sales because Kicks buyers will likely hang onto their vehicle longer," he said.

The Kicks gets overhauled with a larger engine and all-wheel drive for the 2025 model.

According to dealers who have seen the vehicle, the new Kicks is boxier, rides higher and is more like an SUV.

It features slimmer headlights and taillights and brings Nissan's new grille design.

Future versions might receive Nissan's e-Power serial-hybrid technology, available on the Kicks in other markets.