Report – Hindustan Motors pays part of overdue wages; Uttarpara plant may never reopen

Posted on: Jun 4, 2014 - 9:30am IST

After promising to pay at least a part of the outstanding wages to its workers, Hindustan Motors came clean and paid off a total sum of Rs 1.8 crore on Monday.

A series of reports suggest that close to 2,600 workers have been paid Rs 7,000 per month for 6 months as part-payment. The company, which had shut down its Uttarpara plant late last month, said that even this sum had to be borrowed as there wasn’t any cash from sales of the iconic Ambassador car.

HM Ambassador BS4 edition
Hindustan Motors borrowed Rs 1.8 crore to pay part of the money it owed to its 2,600 employees.

Last Thursday, the West Bengal government had held the first of its bipartite meeting with the management of Hindustan Motors. After pushing for wages to be paid, West Bengal’s labour minister Purnendu Bose said to the media that the plant is unlikely to open any time soon. Acting CEO of HM, Moloy Chowdhury had briefed the minister of the position of the company.

Another bipartite meeting is set to be held on Tuesday, June 3rd.

Hindustan Motors had shut down its Uttarpara plant in West Bengal with effect from May 24, citing lack of funds, worker discipline and almost no sales as reasons. While a top management rejig prior to the shut down was ineffective, HM still insists that it is on the look out for buyers for its manufacturing facility.

[Source – The Economic Times]

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3 thoughts on “Report – Hindustan Motors pays part of overdue wages; Uttarpara plant may never reopen

  1. Abhishek Das says:

    So Sad to see the Car once We recognize India with, The Car which is more than just a Car. The Car without Which a picture of India was incomplete. Is going to die forever. And I feel both state Govt and Central Govt are responsible for it. For Letting it die. They can do a lot. But they wont.

  2. k s pradeep says:

    take in the case of america where many iconic cars have been bestowed with a national monument status,it is sad to note that such a marque never before nor in the future with great agility has been shrugged off in a ruthless manner.can anyone remember the last beetle rolled out of the mexican assembly was celebrated as an national event.why this relentless attitude both from the center and its home state west bengal ?
    even at this juncture nothing has lost.Instead of the home turf the HM should shore up it’s ante in the overseas market.Why can’t it take a leaf from the London’s taxi.Irrevocable still going strong. Transplanting the engine bay with 6 cylinder horse,fresh new body panels emerging from a new better tooled dies and jigs ,new world class paint shop will certainly ward of the negative postulates. Just concentrating on the tourists from the abroad will do the much needed effort and for this juggernaut a sincere attempt from all corners is required if not it should re-launch the hand geared version for a change .
    finally one request to the bosses at least they should see that the ambassador makes its way into the school syllabus because amby was not just a car it was a brand AMBASSADOR of India for more than 7 decades in all caricatures of the social,cultural our pride and a still monument of our heritage ,words phrases columns endless articles coverage’s etc etc will never be able to brim the vacuum created by ending an glorious chapter in the history of automobiles, not in the context of our sub-continent but for the whole world of dying auto enthusiast’s.
    once again a humble salute

  3. Raghavendra says:

    It’s sad that such an iconic brand will die like this. Some manufacturer should try to buy this brand and resurrect it like BMW did with their mini. It will be success for sure.


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About the Author
Karthik H

A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to for quick and unassuming updates from across the world.