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Now seven decades after the first Ambassador rolled out, Hindustan Motors has put the brakes on its Uttarpara, West Bengal factory.
It's end of the road for Ambassador | ET Auto
The company's best efforts to revive the unit have failed. Given the circumstances, it has no alternative but to declare suspension of work at the plant with effect from May 24, 2014
Modelled on the British Morris Oxford III, the Ambassador commanded a lion's share of the fledgling Indian car market of the '70s and early '80s but lost its lead when companies like Maruti Suzuki, Hyundai and Ford came to India, relegating it to a mere 'sarkari' (government) vehicle. Sporting a red beacon, the vehicle had come to personify political and administrative status since its launch. Though it is still the official vehicle for some of the country's elite, most politicians have moved on to safer and luxurious SUVs and sedans from the likes of Mercedes Benz, Audi and BMW.
The poor financial position has resulted in delays in salary that in some cases has not been paid for over five months. And despite being a loss-making unit, the staff strength at Uttarpara is still very high as it is difficult to lay off workers in the politically-charged state of West Bengal. While the company has assured they will pay accumulated liabilities, the suspension came as a shock, not only for workers but also the neighbourhood