Ambassador's funeral: Hindustan Motors sacks 240 managerial staff

India's oldest car maker Hindustan Motors, which suspended work at its Uttarpara plant on 24 May amid the well-publicised discontinuation of its famous Ambassador car, has terminated the services of around 240 managerial staff.

The West Bengal-based company had announced earlier that it is virtually dead, with the end of Ambassador production. Nonetheless, Hindustan Motors will retain some staff in departments such as finance and human resources.

A company spokesperson said, "Managerial restructuring has been an on-going process over the last 2-3 years and continues in an effort to optimise work flow while retaining staff that remains critical to the continuity of operations."

The plant manufactured the iconic Ambassador cars, whose demand in the market place dwindled owing to the onset of stiff competition from Japanese and Korean carmakers.

The West Bengal labour department has called a meeting with the parties concerned on 12 June, perhaps in the lingering hope of keeping HM operational in an industry-starved state.