Launch of both the Contessa diesel and the Contessa petrol simultaneously would merely confuse the customers who are looking forward to the diesel launch, said R Santhanam, executive vice-president, automobile division, Hindustan Motors.
We are all set to launch Contessa Petrol 1.8 GLX in south India by September 15 and thereafter, introduce the model in west, Santhanam Business Standard.
The Contessa diesel would be launched in the market a month later.
Already reeling under pressure due to the liquidity crunch faced by industry, and the intense competition with the entrance of new car manufacturing companies with high cost efficiency plants, Hindustan Motors has been under severe strain.
The company's problem was further compounded following serious unrest by a Citu-led Convoy Driver's Union disrupting despatch of Ambassador cars by trailers and railway wagons from end-June, causing huge financial loss as the customers threatened to cancel orders.
According to union sources, the central issue in the negotiations is the fulfillment of a stipulation in a two year old agreement involving the government that 99 temporary staffers would be made permanent.
Frequent disruptions also had an adverse effect on the company's vendors.
Continuity of cash inflow is a must for day-to-day operations and prompt vendor payments. Unless vendors are paid, the supplies of materials goes interrupted leading to shortages and production bottlenecks, stated the notice of suspension of work hung gate of at the Uttarpara unit on August 14.
Though the tripartite meeting between the West Bengal Labour Commissioner, Hindustan Motors and Hyderabad Industries Workers Union and the management enabled the company to maintain normalcy at the Uttarpara unit and begun despatches, the impasse continues.
The stalemate between the worker' union and the management still persists though some advances has been made. According to Santhanam, bipartite discussions between the management and the convoy drivers' union is currently on to resolve the issue.
However, if the bipartite discussions is inconclusive at the meeting scheduled on Friday, tripartite meeting will be held to come to an amicable decision, the executive vice-president added.
