Scandal-ridden Mitsubishi Motors Corp. might cut employees' annual bonuses for the current business year, sources said Tuesday.
MMC has also decided to pay no retirement benefits to three outgoing company executives.
MMC's domestic sales plunged following revelations of a series of defect-coverup scandals.
At wage negotiations with its labor union this spring, MMC agreed to pay annual bonuses worth three months of salary for the year through March 31 -- 1.5 months each for summer and winter bonuses.
The latest step will affect winter bonuses, although a specific cut is yet to be decided, the sources said.
Some 12,000 MMC employees belong to the labor union and receive an average 900,000 yen in bonuses each year.
Shoichi Nakagawa, minister of economy, trade and industry, said MMC should redouble its efforts to help restore public confidence in the company.
"MMC is in a very severe condition and is expected to review its restructuring plan," he said. "What is needed for the automaker is to at least restore confidence among consumers, car dealers and shareholders."