The ’Ambassodor’ car - India’s former ’Royal Chariot’ off the road?

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Kolkata, May 25, 2014: Reports from Kolkata indicate, the manufacturer Hindustan Motors (HM) has suspended work at its Uttarpara plant in Hooghly district of West  Bengal, leading to speculations that it may not reopen. A company notice informs that “temporary suspension” of work will come into effect from 6am on May 24,2014.  But the fact is the facility was in trouble from the last few years leading to widespread speculation about a permanent closure but the management has remained tight-lipped.

An estimated  2,500 employees and the workers may go on a prolonged agitati on. “The suspension of work will stop bleeding the company. Things will improve once a strategic investor comes in,” a senior manager said, adding that the employees will not be paid during the suspension.

The cash-strapped car plant, set up by the Birlas in 1948 to give a boost to the indigenous automobile industry, was bifurcated a few years ago from the company’s Chennai facility, which was brought under Hindustan Motors Finance Corporation Ltd. Evasive about the plant’s situation over the years, the HM management finally stated in the notice how the plant is dogged by a variety of problems.  Over a period of time, the Ambassador was relegated to the taxi market, which in recent times was confined only to replacement of 15-year-old vehicles. As the state government allowed other new cars as taxis, the plant was further hit.

Sources indicate, Chief Minster Mamata Banerjee has instructed Finance Minister Amit Mitra, who also holds the industry portfolio, to look into the matter. Many of the old India order will hope that this is not the end of the road for India’s Golden Chariot of the muddy road - The Ambassador!