Cars in India | Autoportal.com
Select City

Hindustan Motors terminates 240 managers at its Uttarpara plant

Snapshot: India’s oldest carmaker has declared suspension of work at its Uttarpara plant in West Bengal.

India’s oldest and troubled automaker, Hindustan Motors who declared suspension of work at it Uttarpara plant on May 24 has reportedly, terminated 240 of its managerial staff. The company however, as retained some staff in disciplines such as HR and finance. 

The termination notice issued to the managers that was signed by HR head read, “Your employment will come to an end with expiry of your notice period, as applicable to your grade. You will be paid your accrued entitlement and other out-standings.” 

The company had provided employment to around 2,394 workers. A company personnel said, “Managerial restructuring has been an on-going process over the last 2 to 3 years and continues in an effort to optimise work flow whilst retaining staff that remains critical to the continuity of operations.”

Hindustan Motors and its plant in Uttarpara have been in the news a number of times this past few months, due to the critical shortage of funds. Earlier in May, the company was reportedly, looking for investors to revive the loss-making plant. By the end of May however, Hindustan Motors halted the production of the Ambassador sedan indefinitely. 

A couple of years ago, the plant was producing 700 to 800 Ambassador 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, compelled the automaker to suspend all work and operations at the plant.

Related car news

  • Production of Ambassador sedan suspended indefinitely 26-05-2014 Gauri Lokhre Production of Ambassador sedan suspended indefinitely
  • Hindustan Motors desperately seeking new investors to revive Kolkata plant 14-05-2014 Gauri Lokhre Hindustan Motors desperately seeking new investors to rev...
  • Mitsubishi drops its plan of buying the Hindustan Motors' Tiruvallur facility 08-01-2014 Akshit Juneja Mitsubishi drops its plan of buying the Hindustan Motors'...
  • Mitsubishi launches one-off its kind 120 Minute Xpress Service 11-10-2013 Vikas Yogi Mitsubishi launches one-off its kind 120 Minute Xpress Se...
  • Ambassador Encore BS4 Launched by Hindustan Motors at 4.98 lakhs 02-09-2013 Prateek Pandey Ambassador Encore BS4 Launched by Hindustan Motors at 4.9...
  • Nico Rosberg announces retirement from F1 racing Today Autoportal Team Nico Rosberg announces retirement from F1 racing


Helpline