Hindustan Motors terminates production of Ambassador

Hindustan Motors terminates production of Ambassador New Hindustan Motors Ambassador
author image Aditya Chatterjee
Monday 26 May 2014, 10:32 AM

Owing to multiple reasons contributing towards descending circumstances at Hindustan Motors manufacturing unit located in Uttarpara, the company has stopped production of Ambassador. The Uttarpara facility has an annual manufacturing capacity of 40,000 units, however for the past couple of years the demand for its essential product Ambassador has been fading away leading to low productivity. In the last financial year, the company sold a meager 2,214 units of Ambassador as compared to 3,471 units sold in the previous financial year. Besides this, the problem of flourishing indiscipline has also stung the Uttarpara unit of HM, other issues including shortage of funds and conglomeration of liabilities have also been cited among the major reasons for HM to suspend production at the manufacturing unit.

Hindustan Motors Terminates Production of Ambassador
 

Just a while ago, speculations were abuzz that HM was in talks with a firm from foreign land (name undisclosed), to lend a helping hand to sinking HM by making a strategic investment. Suppressed under the burden of aggregate losses surmount HM’s net worth (as of September 2013), the investment would have helped HM to survive. The company has been looking for an investor for a long time but it did not find anyone to invest in the company. Therefore in January 2013 the company transferred its Chennai Car Plant to its fully owned financial arm- Hindustan Motor Finance Corporation Ltd (HMFCL).

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