Sources in the company said that the suspension notice was pasted on factory gates on Friday night.

The Uttarpara plant had been facing severe cash crunch, and orders for manufacturing Ambassador passenger cars could not be executed, they added.

"The suspension of work will stop bleeding of the company. Things will improve once a strategic investor comes in with funds," the sources said.

The Uttarpara plant, which employs close to 2,500 workers and managerial staff, had been bifurcated from the Chennai facility which was brought under Hindustan Motors Finance Corporation Ltd.

All the employees of the Uttarpara plant would not be paid salary during the suspension of work period, the sources added.


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