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Hindustan Motors Ltd has announced a voluntary retirement scheme for all permanent grade scale staff and technicians of the company’s non-operational Uttarpara plant in West Bengal.
The company said this in a statement to the stock exchanges. The plant is non-operational since May 24 last year when the management had placed on a notice for suspension of work.
The company, however, did not mention how many such employees will be eligible for voluntary retirement scheme. It said such an employee would have to be on the rolls of the company as on October 1.
PTI reports:
In a regulatory filing, the company had said that various factors, including very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product — the Ambassador — and large accumulation of liabilities led to the suspension of work at the plant.
The Uttarpara plant, which started operations in 1948, used to produce Ambassador (1,500 and 2,000 cc diesel, 1,800 cc petrol and CNG & LPG variants) in the passenger car segment and light commercial vehicle, HM Winner.
The company also manufactured automotive and forged components in the plant.
Once a status symbol, the Ambassador began losing its dominance in the mid-1980s when Maruti Suzuki India Ltd introduced its low-priced 800 hatchback.
It further lost market share when global auto makers began setting up shop in India in the mid-1990s, offering models with contemporary designs and technology.
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