Friday, February 10, 2017

Hindustan Motors sells Ambassador car brand to Peugeot for Rs 80 Crore

One of the oldest iconic car brand of India Ambassador is being sold to French carmaker Peugeot for Rs 80 Crore. In a statement from Hindustan Motors said, We have executed an agreement with the Peugeot SA Group for the sale of the brand Ambassador, including the trademarks... We intend to use the proceeds from the sale to clear dues of employees and lenders.

The Ambassador brand was introduced seven decades ago when Hindustan Motors launched the Morris Oxford series II (Landmaster) in a new avatar with minor changes. From 24,000 units a year in the mid-1980s, sales slumped to less than 2,500 units in 2013-14.

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On May 24, 2014, the inevitable happened when work was suspended at the Uttarpara factory of Hindustan Motors. The Uttarpara plant dates back to 1942, making it the second oldest in Asia after Japanese giant Toyota.



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