Hindustan Motors wants a suitable time-frame to resolve the situation arising out of the temporary suspension of work that it had declared at its Uttarpara unit, where the Ambassador cars are made.
In a brief statement issued after a meeting with the West Bengal Labour Minister Purnendu Bose and senior officials of the State Labour Department, the company said that it had no intention of suspending work for an indefinite period , but the present productivity levels were unviable and unsustainable for resuming operations.
“ The present cash-flow challenges arising out of continuing losses over the past 10 years, increased material cost on account of lower volumes, and productivity levels make the present operational structure unviable and unsustainable to resume operations,” the company said.
The company has, however, agreed to release advance wages within the next 3-4 days to resolve the immediate situation. The current situation continues to remain challenging more so as the company is left with no disposable assets or investments which can be utilised to fund cash losses, it said.
The company has requested for a suitable time-frame within which it can restructure the organisation and significantly reduce its liabilities before deciding on next steps.
According to Mr. Bose, “two to three Chinese firms have checked out that plant and may partner a revival if possible’’.
