Let’s
track the some of the recent events that changed the fortunes of Hindustan
Motors.
JANUARY 2013: Hindustan
Motors Limited (HML) decides to demerge and transfer its Chennai Car Plant
(CCP) as a going concern to its fully owned subsidiary organisation Hindustan
Motor Finance Corporation Limited (HMFCL). Mitsubishi was rolling out its four
wheelers from this Chennai plant.
HML’s
Board gave its nod to the Scheme of Arrangement providing for segregation and
realignment of CCP business unit and other business units in two different
entities so as to pursue their respective growth plans as appropriate. In
consideration of the demerger, HMFCL issued and allotted to the shareholders of
HML, 1 (one) Equity Share of Rs.5/- each in HMFCL credited as fully paid up for
every 13 (thirteen) Equity Shares of Rs. 5/- each fully paid-up held by them in
the capital of HML.
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HINDUSTAN MOTORS TO DEMERGE ITS CHENNAI CAR PLANT
JUNE 2013: Isuzu
Motors India Private Limited, a subsidiary of Isuzu Motors Limited, Japan, signs
an agreement with Hindustan Motors for contract manufacturing of Isuzu SUVs and
pickup trucks in India. The components for producing these vehicles will be
imported by Isuzu Motors from Thailand and assembled in HML’s factory at
Thiruvallur, near Chennai, Tamil Nadu.
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HM TO ASSEMBLE ISUZU VEHICLES AT THIRUVALLUR
JAN 2014:
Japanese automobile manufacturer Isuzu Motors holds a ground breaking ceremony
for its new manufacturing facility at Hyderabad. Isuzu Motors India was
established in August 2012. The company started its India operations by
bringing in limited volume of completely built units (CBUs) for the purpose of
test marketing and developing a better understanding of the Indian customers. In
the next phase of its project it started the assembly of CKD units in contract
manufacturing with Hindustan Motors Limited. This is an intermediate stage of
the company’s project in India, before the start full fledge localised
manufacturing at its own plant at Sri City in Andhra Pradesh.
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ISUZU PLANS LOCALISED PRODUCTION AT AP BY 2016
MAY 2014: Hindustan
Motors Ltd officially informs that it has declared suspension of work at its
Uttarpara Plant with effect from 6.00 AM of May 24, 2014. The company said that
it was witnessing worsening conditions at its Uttarpara Plant which included
very low productivity, growing indiscipline, critical shortage of funds, and
lack of demand for its core product the Ambassador and large accumulation of
liabilities.
NOVEMBER 2014: The
company announces a Voluntary Retirement Scheme for all permanent "grade
scale staff and "technicians" on the roll of Hindustan Motors Limited
(Uttarpara Plant) as on December 01, 2014.
SEPTEMBER 2015: The
company announces a Voluntary Retirement Scheme for all permanent “grade scale
staff" and “technicians” of the Company on the roll of Hindustan Motors
Limited (Uttarpara Plant) as on October 01, 2015.
NOVEMBER 2015: The
Board of Directors of the Company at its meeting held on November 02, 2015, approves,
among other things, sale of such area of the land of Uttarpara Plant of the
Company as may be identified up to 50 acres subject to approvals, no
objections, permissions etc., as may be required including that of Government
of West Bengal and Lenders and authorized Uttam, Bose, Director of the Company
for the purpose.
JANUARY 2017: PSA
Group of France and CK Birla Group sign joint-venture agreements to produce and
sell vehicles and components in India by 2020. It was in 1976 that Citroën S.A.
and Peugeot S.A. merged to form the PSA Peugeot Citroën group. Then in 2016 PSA
Peugeot Citroën became the PSA Group, a symbol of the Group's transformation. (The PSA Group has since merged with Fiat
Chrysler Automobiles to form Stallantis)
The
ceremony of signature between PSA and CK Birla groups was held in Paris on
January 25, 2017. As per the second agreement, a 50:50 joint-venture was set-up
between the PSA Group and Avtec Ltd for manufacture and supply of powertrains.
The manufacturing sites for both vehicle assembly and powertrains will be based
in the state of Tamil Nadu.
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PSA GROUP, CK BIRLA GROUP SIGN TWO JVS WITH HMFCL AND AVTEC
FEBRUARY 2017: Hindustan
Motors executes an agreement with Peugeot S.A. on February 10, 2017 for the
sale of the Ambassador brand (including the trademarks having application
numbers 2803570, 2803571 and 2821821) and certain related rights
("Ambassador Brand") by the Company (Hindustan Motors Limited) to
Peugeot S.A for a consideration of Rs 80,00,00,000 (Indian Rupees Eighty
crores).
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ICONIC HM BRAND IS NOW LE AMBASSADOR AFTER BUYOUT BY PEUGEOT
APRIL 2019:
Even though reports suggest that Groupe PSA would be using the iconic
‘Ambassador’ name for its electric vehicles in India in the future, there was
no official confirmation on it during the unveiling of the Citroen C5 Aircross
in Chennai, Tamil Nadu. “At the moment, how we use the name Ambassador, it should
be credible and respectful,” said Linda Jackson, Chief Executive Officer,
Citroën Brand, Groupe PSA.
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‘AMBASSADOR’ NAME WILL BE USED VERY RESPECTFULLY, SAYS LINDA JACKSON