After the Kolkata based company stopped the production of Ambassador cars in 2014, Hindustan Motors sold its iconic brand to French automotive company Peugot for $12 million according to a report but PTI. Back in 2014, the company stopped production of the car citing poor demand and debt. As a result, two companies have signed an agreement that surrenders the brand and related rights associated with the brand.
In an official statement from CK Birla group said, “Hindustan Motors has executed an agreement with Peugeot SA for the sale of the Ambassador brand, including the trademarks. We intend to use the proceeds from the sale in clearing dues of employees, lenders and others.”
Earlier in January, two companies signed an agreement to setup a vehicle and powertrain manufacturing unit in Tamil Nadu with an investment exceeding $100 million with a target to produce around 100,000 vehicles per year.
This is not the first time the French company intended to establish itself in India as back in 2001 its deal with another premier brand fell through. As CK Birla group is actively trying to establish itself again in the Indian Market after repeated failures in the recent years, this deal should be welcomed by everyone in the company given that Peugot has already established itself in the automotive industry in the recent years.
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