• For more financial news, go to the News24 Business front page.

Japanese automaker Nissan on Thursday announced 9 000 job cuts as it slashed its annual sales forecast, saying it was taking urgent measures to tackle "a severe situation".

The company reported a 93 percent plunge in net profit in the first half as CEO Makoto Uchida told reporters that weak sales in the North American market were a major factor.

Nissan and its domestic rivals are also struggling to stand their ground in China, as fast-growing electric vehicle firms backed by Beijing race ahead.

"Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market," a company statement said.

"Nissan will cut global production capacity by 20 percent and reduce its global workforce by 9,000," it added.

Uchida "will voluntarily forfeit 50 percent of his monthly compensation starting in November 2024 and the other executive committee members will also voluntarily take a pay reduction accordingly", the statement said.

The firm now expects net sales of 12.7 trillion yen ($80 billion) -- down from 14 trillion previously forecast.

But Nissan did not issue a net profit forecast on Thursday, having downgraded it in July to 300 billion yen. In the six months to September, net profit was just 19.2 billion yen.

"Net income is to be determined due to ongoing assessment of costs necessary for the planned turnaround efforts," Uchida said.

Nissan's "core" vehicle models are not performing as well as before in North America, he added. "From the cost perspective, and the brand-strength perspective, we will rebuild our brand in America," Uchida said.

Among other measures, the automaker will reduce its stake in Mitsubishi Motors by selling shares back to the firm.

It said its stake in Mitsubishi will fall to around 24 percent from 34 percent currently. Uchida added that Nissan would keep close ties with the company.

Nissan has seen a turbulent decade that included the shock 2018 arrest of former boss Carlos Ghosn, who later jumped bail and fled Japan concealed in a music equipment box.

Ghosn remains an international fugitive in Lebanon and denies the allegations against him. He said he fled Japan because he did not believe he could receive a fair trial.

When asked about Donald Trump's victory in the US presidential election, Uchida said Nissan was "hearing various things, like tariffs, but it's not just us".

"We will be lobbying, and the direction of our medium- to long-term plans should remain, but we will conduct our business while monitoring the situation carefully," he added.

We live in a world where facts and fiction get blurred

Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.