Hindustan Motors suspends work at Uttarpara Plant

Hindustan Motors has declared suspension of work at its Uttarpara Plant in West Bengal with effect from May 24, 2014. The company has taken this step due to the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds and lack of demand for its core product the Ambassador and large accumulation of liabilities. Further, given the present circumstances the company has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice. The suspension of work will enable the company in restricting mounting liabilities and restructure its organization and finances and bring in a situation conducive to reopening of the plant. Hindustan Motors is India’s pioneering automobile manufacturing company manufactures passenger cars, Multi Utility Vehicles and RTV. It also manufactures passenger cars in the mid size premium segment (Mitsubishi Lancer, Lancer Select, and Lancer Cedia) and has brought the Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market, in collaboration with Mitsubishi Motors of Japan.