Hindustan Motors who seem to have hit rock bottom, wherein its primary existence is being challenged has reached a new low. According to latest reports, the company is now desperately looking for new investors to revive its loss-making plant in Uttarpara in West Bengal. The said plant is reportedly, facing sever cash crunch, and as a result the production of the traditional Ambassador sedan has plummeted to dangerously low level.
A couple of years ago, the plant was producing 700 to 800 Ambassadors sedans per month. However, in April 2014 the facility was able to churn out a mere 100 units, due to lack of funds. The facility has been facing losses to the tune of Rs 7 to 8 crore per month. The amount of huge losses with almost no cash inflow in the company has proved to be a really tough situation for the automaker. “We are looking at all possible options for the revival of the Uttarapara plant, which include roping in new investors for funds.” a company personnel said.
Last week, Mr Uttam Bose who was the managing director and CEO of Hindustan Motors stepped down and his role was taken over by Mr Moloy Chowdury - who owns assets at Uttarpara and Indore plant. Chowdury had left the company back in 2010 when Manoj Jha was appointed the managing director of the firm. He later rejoined the company in October 2013. Mr Bose on the hand, has been appointed as the managing director of Hindustan Motors Finance Corporation, which last month acquired the assets of the Chennai plant.