End of the road for the ‘Grand Old Lady’ of India

India's oldest car factory has abruptly suspended production of the hulking Ambassador sedan that has a nearly seven-decade history as the car of the Indian elite.

It was unclear how long manufacturing will be on hold, but Kolkata-based Hindustan Motors said Monday it hopes to resume making the so-called "Amby" after a period of restructuring and clearing of its debts.

The heavy car's large size and poor gas mileage have driven customers to cheaper competitors from abroad. About 80 percent of cars sold in India today are small cars that can maneuver in crowded cities and that cater to a rising middle class eager for wheels without costs.

An Indian government owned Ambassador car is parked beside a road in Kolkata, india. The company began making the Ambassador in 1948, modeling it after the British Morris Oxford III. Last year only 2,214 of the vehicles were sold, reflecting a steep decline from production levels in the 1980s around 24,000 vehicles a year.

The back panel of an Ambassador car shows its logo as it is parked at a workshop for repairs in Kolkata, india. Also known as the grand old lady of India's pot-holed and pitted roads, the Ambassador has remained largely unchanged for more than five decades in ferrying the elite including prime ministers and high-society celebrities. It recalls an era when India's policy of economic self-sufficiency meant domestically produced cars were the norm.

An Ambassador car, licensed as taxi rolls past other vehicles through a busy road in Kolkata, india. Its bulbous chassis and bouncy back seats delight tourists and other passengers nostalgic for earlier times, while many in rural India still view white Ambassadors as the de-facto vehicle of officialdom. Though most Ambassador sales go to taxi services and government departments, "there has been a reduction in demand for the Ambassador," the company said.

An Indian worker repairs an Ambassador car at a workshop in Kolkata, india. Hindustan Motors, which as of September had accumulated losses greater than its assets, said the company's Uttarpara plant, just outside Kolkata in the eastern state of West Bengal, was suffering from problems including very low productivity, growing indiscipline, a critical shortage of funds and lack of demand for the Ambassador.

The back panel of an Ambassador car shows its logo as it is parked at a workshop for repairs in Kolkata, india. It announced the indefinite production suspension, including a halt in the payment of salaries to nearly 2,500 employees, in a notice pasted on the factory gates Saturday night.

Indian workers repair an Ambassador car at a workshop in Kolkata, india. Hindustan Motors said it plans to reopen the Uttarpara factory after settling debts and restructuring. The plant also makes a 1-ton mini-truck called the Winner as well as car parts.

An Indian woman walks past a parked Ambassador car in Kolkata, india. Hindustan Motors has been unsuccessful in a long search for new investors. Earlier this year it transferred another car plant based in the south-coast city of Chennai to its financial arm, Hindustan Motor Finance Corporation Ltd. That plant produces Mitsubishi and Isuzu brand vehicles for the Japanese companies.

Courtesy by: yahoo.com