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Nissan (NSANY) Halts New Orders for Ariya SUV on Supply Issues
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Nissan Motor Co. (NSANY - Free Report) recently notified its dealers in the United States to stop taking new orders for the company’s 2023 battery-electric Ariya SUV on the grounds of supply chain issues that have been affecting production at home in Japan.
Nissan believes that it is judicious to scale down orders to the level at which it can realistically deliver this year. Demand for Ariya SUV has been surging in the United States, Europe and Japan. Previously, the Ariya plant had experienced disruptions when production was halted in 2020 due to semiconductor supply issues and the pandemic. In the current context, the company has decided not to promise more than it can actually deliver.
Deliveries of the front-wheel-drive model saw a delayed start in Japan in May, after initially being scheduled to begin in March. The flagship 4WD model is supposed to be up for a late 2022 launch.
It is uncertain as to how long Nissan intends to keep Ariya EV orders closed. The starting price for the U.S.-spec base-grade front-wheel-drive model is $45,950. Though Nissan has allotted around 6,000 vehicles to the United States market, it has not been able to provide a clear delivery schedule.
Ariya is Nissan’s second mass-produced electric vehicle after the Leaf. It is built in a dedicated new section at its Tochigi assembly plant, north of Tokyo. The production in the plant was affected by COVID-imposed travel restrictions, with Japan being closed to foreign engineers until recently.
We will have to wait and see when Ariya orders are reopened.
Shares of Nissan have declined 22.8% over the past year compared with its industry’s 22.4% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
NSANY currently carries a Zacks Rank #5 (Strong Sell).
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been 2.7% upward in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 6.4% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 46.3% over the past year.
Standard Motor has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.3% upward in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 14.1% over the past year.
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Nissan (NSANY) Halts New Orders for Ariya SUV on Supply Issues
Nissan Motor Co. (NSANY - Free Report) recently notified its dealers in the United States to stop taking new orders for the company’s 2023 battery-electric Ariya SUV on the grounds of supply chain issues that have been affecting production at home in Japan.
Nissan believes that it is judicious to scale down orders to the level at which it can realistically deliver this year. Demand for Ariya SUV has been surging in the United States, Europe and Japan. Previously, the Ariya plant had experienced disruptions when production was halted in 2020 due to semiconductor supply issues and the pandemic. In the current context, the company has decided not to promise more than it can actually deliver.
Deliveries of the front-wheel-drive model saw a delayed start in Japan in May, after initially being scheduled to begin in March. The flagship 4WD model is supposed to be up for a late 2022 launch.
It is uncertain as to how long Nissan intends to keep Ariya EV orders closed. The starting price for the U.S.-spec base-grade front-wheel-drive model is $45,950. Though Nissan has allotted around 6,000 vehicles to the United States market, it has not been able to provide a clear delivery schedule.
Ariya is Nissan’s second mass-produced electric vehicle after the Leaf. It is built in a dedicated new section at its Tochigi assembly plant, north of Tokyo. The production in the plant was affected by COVID-imposed travel restrictions, with Japan being closed to foreign engineers until recently.
We will have to wait and see when Ariya orders are reopened.
Shares of Nissan have declined 22.8% over the past year compared with its industry’s 22.4% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
NSANY currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked players in the auto space include Wabash National Corporation (WNC - Free Report) , carrying a Zacks Rank #1 (Strong Buy) and Fox Factory Holdings (FOXF - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been 2.7% upward in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 6.4% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 46.3% over the past year.
Standard Motor has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.3% upward in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 14.1% over the past year.