After decades of serving the Indian population, Hindustan Motor's iconic Ambassador brand, is being sold to French car manufacturer Peugot.
Ambassador is owned by the Birla Group of companies, and Hindustan Motors reportedly signed a formal deal for Rs 80 crore on Friday.
"We have executed an agreement with the Peugeot SA Group for the sale of the brand Ambassador, including the trademarks... We intend to use the proceeds from the sale to clear dues of employees and lenders," a CK Birla Group spokesperson told the Times of India.
Other reports said that the deal included the sale of Ambassador's “brand and certain related rights”.
However, Peugeot's plans are still unclear.
Ambassadors first hit the roads in India in 1954 at what was known as Calcutta back then, as the Hindustan Landmaster, and were modelled around the Morris Oxford.
Over its fame that spanned several decades, it went on to even serve the country's Prime Ministers and several top people in power, while also serving the common man.
However, it suffered serious losses over time following economic liberalisation in India that allowed other brands to enter the country and compete.
In November last year, the company posted a net loss of Rs 10.36 crore in the first six months of the fiscal.
The company had earlier declared suspension of work at its Uttarpara plant in West Bengal in May 2014 due to "low productivity, growing indiscipline, shortage of funds and lack of demand of products".
It also declared a layoff at its Pithampur plant in Madhya Pradesh in December, 2014 due to "lack of orders".
"The management is in the process of restructuring the operations including rationalizing the costs. The management believes that these measures may result in sustainable cash flows," the company said in a filing to National Stock Exchange.
The accumulated losses of the company were at Rs 233.05 crore as against the share capital of Rs 104.41 crore by end of 2015-16.