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Old 11th February 2017, 10:30   #1
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Default Hindustan Motors sells brand 'Ambassador' to Peugeot

As I opened the news paper today, the first thing I noticed was that Hindustan motors has sold the brand Ambassador to Peugeot.

http://timesofindia.indiatimes.com/a...w/57089753.cms

Quote:
The C K Birla Group-owned Hindustan Motors formalised the deal for Rs 80 crore on Friday. Production of Ambassador cars had stopped around three years ago.
"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 said.
I hope that Peugeot keeps the brand alive, and does to the Amby what BMW did to the Mini.

Rahul

Last edited by Rudra Sen : 11th February 2017 at 17:21. Reason: Quote added
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Old 11th February 2017, 10:43   #2
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Now that's some news.

Wonder who would buy the Contessa brand name next.

Though, for me, Ambassador and Peugeot in one sentence reminds me of this

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Old 11th February 2017, 11:00   #3
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Peugeot is trying to bypass the brand building process by cashing in on Ambassador's popularity. They will probably market 308 as Ambassador and position it against City and Ciaz.

But I dont know if Ambassador still has that kind of reputation among Indian buyers. Just copying the name is surely not enough. Even the song in that old peugeot ad seems like a copy of Queen's Under pressure. That sure didnt help.

Last edited by deerhunter : 11th February 2017 at 11:04.
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Old 11th February 2017, 11:20   #4
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

As long as Peugeot are able to give a Peugeot quality (nay a trace of HM unreliability), they can use any brand name. Maybe they think they can get some institutional sales in government sectors.I have a nasty feeling that they may lose some image.

In any case Premier may have dented them enough, with the 309.

I for one have used a Peugeot 205GL in the UK for two years, and loved this Pininfarina design. The 309 was the saloon version of the 205.

I doubt even if they pick up the HM service network, it may do more harm than good.

Best of luck to the 'Frogs'.
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Old 11th February 2017, 11:39   #5
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

If the misadventure with Premier automobiles wasn't enough.
I doubt this will bring anything positive to Peugeot. Times do change; Ambassador might once be a proud thing to own for Indians, but that was more than 4 decades ago. I don't think that the brand name is an aspiration or even a 'positive thing' anymore.

Peugeot may have shot themselves in the foot this time.

Regards,
Saket.
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Old 11th February 2017, 12:32   #6
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

With a product portfolio, filled with great looking cars, why would they invest in a brand like Ambassador?

Would I like to see a modern day Ambassador? Hell, yes!

Would I buy it? If they go the Beetle / Fiat 500 way, maybe.

Upon Googling, I came across this sketch by Manjunath Acharya, and fell in love with it. If Peugeot has something similar in mind, I am in.
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Old 11th February 2017, 12:40   #7
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Going by brand image, doesn't Contessa enjoy a better brand recall/image factor than the Ambassador? Or may be it is just me. I would love to own a car called Contessa again but the Ambassador just reminds me of a bulbous babus car with a red light on top.

Quote:
Originally Posted by ashutoshb View Post
Upon Googling, I came across this sketch by Manjunath Acharya, and fell in love with it. If Peugeot has something similar in mind, I am in.
That looks like inspired from the Bentley design language. A cross between Ambassador and Bentley.

Last edited by drmohitg : 11th February 2017 at 12:41.
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Old 11th February 2017, 13:03   #8
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

I would love the same looks, the seat posture, and leg room was good, only the edges needed to be smoothed out.

The windows can become flush, the rain gutter can be shaved off. Windshield fit in rubber beading can change to a flush one pasted by silicon, The large chrome ring around the headlamp can go, and a Bullet Enfield like edge free small ring can come in its place.

The 7" glass lamp can hold two projectors, a turn indicator, and LED cluster for day running. The parking cum Indicator lamp below can be replaced by a flush fit high beam lamp.

Metal bumpers should go, and flush fit ABS ones of good quality return in their place.

Independent suspension all round, wider tyres, transverse mounted Peugeot engine around 1.5 Lit with two state of tunes, 80 BHP or so with option of 5 speed manual or AMT for chauffeured car and taxi application, and 100+ BHP with option of a 6 speed or a proper automatic transmission for self drive application.

Just the same shape, but proper crumple zone, airbags, abs and all creature comfort added.

Modern car with old looks.

Rahul

Last edited by GTO : 13th February 2017 at 11:27. Reason: Typos
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Old 11th February 2017, 13:07   #9
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Communication from HM to Bombay Stock Exchange regarding sale of Ambassador brand to Peugeot S. A.

Name:  C4XZZYLWEAAcOot.jpg
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Old 11th February 2017, 13:17   #10
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Quote:
Originally Posted by SandyX View Post
Communication from HM to Bombay Stock Exchange regarding sale of Ambassador brand to Peugeot S. A.
Really? Did they manage to negotiate Peugeot to pay E-I-G-H-T-Y Crore INR for the brand?

Somebody at HM is really, really smart and someone at Peugeot is...well.

The brand has no relevance, except a faded nostalgia, in both, the Indian and the international context today.

We live in a world where cutting edge technology and marketing approaches can create brands very quickly and embed them in customers minds (Tesla, Amazon, Google, Apple, Red Bull, Vivo, Oppo, Micromax, Myntra) as long as their products are apt and their offerings relevant.

Party time at HM, which BTW is HMFCL now.
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Old 11th February 2017, 15:10   #11
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

On the other hand, I felt that the 80 crores was a steal. Check out Eicher's (the makers of Royal Enfield Bullet) share price rise over 6 years. retro cars are attractive to many buyers , and to the tourism industry. Classic Jeep, Land Rovers, Beetles, Minis will sell forever, but only at an attractive price. Contessas, with design changes looking closer to classic American muscle cars such as Camaro , have a great market in future.

Last edited by vinay kamath : 11th February 2017 at 15:11.
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Old 11th February 2017, 16:17   #12
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Quote:
Originally Posted by Rahul Rao View Post
I hope that Peugeot keeps the brand alive, and does to the Amby what BMW did to the Mini.
I don't really have an interest in seeing the Ambassador survive into the future, but what BMW did to the Mini is no good example.

The ethos of the Mini, way back then, is that it made a new car affordable to many more people. My memory strains, but I think it was under a thousand pounds and advertised as such. Same kind of ethos as the Nano.

On top of all that, it was an all-time classic unique design.

BMW took it and turned it into a rich kid's toy. Bye-bye Mini.
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Old 11th February 2017, 17:18   #13
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Default re: Hindustan Motors sells the "Ambassador" brand to Citroen

Hindustan Motors sells brand 'Ambassador' to Peugeot-2013peugeot301frontangle2.jpg

Pictured above is the current Peugeot 301. It has a badge-engineered twin called CitroŽn C-Elysťe. The twins are Groupe PSA's answer to the Renault/Dacia Logan.

The 301 & C-Elysťe would be up for replacement before Peugeot-CitroŽn get going in the Indian market.

I think a Peugeot Ambassador (un CitroŽn Ambassadeur?) would basically be a different (& very retro-looking!) "top-hat" based on the next 301 & C-Elysťe platform!

I'd happily welcome it!

Last edited by RSR : 11th February 2017 at 17:24.
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Old 11th February 2017, 20:53   #14
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Default Re: Hindustan Motors sells the "Ambassador" brand to Citroen

IMHO, 80-Crore may be a steal deal for a foreign company. I for one would love to see the classic cars back in action esp. the contessa.

Quote:
Originally Posted by ashutoshb View Post
Upon Googling, I came across this sketch by Manjunath Acharya, and fell in love with it. If Peugeot has something similar in mind, I am in.
Impressive. That looks like a contemporary muscle car. Lets hope the sketches are realized.
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Old 11th February 2017, 23:36   #15
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Default re: Hindustan Motors sells brand 'Ambassador' to Peugeot

The deal amount as specified in the newsreport is only paid for the brand equity for "Ambassador" as a brand and for the trademarks. Peugeot has not at all revealed what all it plans to do after acquiring this brand. Though the newsreport says that they may re-enter the Indian market by 2018, this will be their n th attempt into the Indian market.

The first during the recent decades was a JV with M & M to make the diesels for the Mahindra range of jeeps. We saw the 2112 cc/ 540 DP, the 2498 cc/ XD3P engines that stood the test of times.

Their second foray was in the two wheeler segment with the Peugeot Sportif in 1984, a 65 cc moped with alloys, indicators and self starter costing Rs 6500=00 then. Though much ahead of its times, the venture failed due to poor sales. Whatever happened to M/s Chamundi Mopeds, Mysore is history.

Next was their venture with PAL to make the Peugeot 309 and 309 GLD. Though quite rugged and successful cars, both were dated and they competed with the likes of the Maruti Esteem and Daewoo Cielo in this class. Ford and Opel were in a slightly higher niche. The Peugeot cars bombed and the PAL JV and their plant at kalyan, Maharashtra went into a long drawn litigation.

Next Peugeot (PSA) made an abortive attempt in 2011 to again enter as a car manufacturer.

Mahindra Two Wheelers Ltd (MTWL) has acquired 51 percent stake in French firm Peugeot Motocycles (PMTC) about a year back. The two wheelers may soon be launched by M & M.

Back to the Ambassador brand deal, since no toolings, jigs and dies of the HM car have been acquired, it is quite apparent that PSA may begin the process on a new slate right from the design stage. Though it will be quite hypothetical to comment at this stage, PSA would most likely design and market the new car in the very same niches where it had the maximum market penetration. There may be a cheaper variant for the taxi segment (NCAP stars are compulsory for all newly introduced cars wef later in 2017 and the BS VI norms become law wef a date in 2020) and it may also try cater to the government sector and also to the rural segment. And who would not launch something chic for the urban buyers ? They may have a higher version with many of the goodies for the top segment.

At least this new Ambassador will do better saleswise as compared to the Renault / Mahindra Logan, which also boasted of ruggedness.

Last edited by anjan_c2007 : 11th February 2017 at 23:40.
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