Japan's Nissan slashes whopping loss forecast

Restructuring efforts along with an uptick in sales appear to have got Nissan back on the right road.

The Japanese carmaker slashed its annual operating loss forecast by 28% on Thursday (November 12), albeit to a still-record $3.2 billion.

In a reversal of the rapid expansion pursued by ousted Chairman Carlos Ghosn, Nissan is reducing production and its vehicle line-up by a fifth.

That will help it save $2.9 billion over three years.

Chief Executive Makoto Uchida told a briefing on Thursday that the company had to restore the faith of suppliers and dealers.

"We are consistently doing the things we targeted in Nissan next. We will continue this and will not in any way compromise. Thus we will control our fixed costs, and dedicate ourselves to generating revenue from our new models."

As part of its drive to become leaner, Nissan said it will move towards online sales globally, as companies reevaluate retail space.

Japan's third-largest automaker has been hit hard by the health crisis.

It came just as it was trying to recover from the scandal over the ousting of Ghosn on financial misconduct allegations, which he denies.

It has particularly struggled in North America, where it is hampered by an aging model line-up.

Nissan says it's now focusing on lifting sales in China and the United States.

To bolster its finances, the firm has said it will issue $8 billion in dollar-denominated bonds.