Mitsubishi Motors Corp. President Osamu Masuko says the automaker is considering raising employees' pay and also resuming dividend payments for the first time in over 16 years in fiscal 2013, reflecting its recovery from a decade of slumping sales.

Asked during a recent interview with several news agencies about the possibility of pay raises, Masuko said the company "should certainly do so," and that it should do whatever it can to help lift Japan out of chronic deflation.

"If we do not take a small step so as to lift Japan's economy, automobile demand could shrink," he said.