As per reports, Pininfarina, the iconic Italian design behemoth has been eager to sign a deal with Indian automotive giant Mahindra & Mahindra over the next few weeks.
In news that has definitely been a welcome surprise for the automobile industry in India, Italian car design icon Pininfarina is expecting to sign a deal with Indian conglomerate Mahindra & Mahindra over the next few weeks. Pininfarina has designed vehicles for Cadillac, Ferrari, Rolls Royce and Maserati and has been a loss making entity for years now. Total debt of the company stood at approximately 52.7 million euros or $57 million by June 2015.
According to Pininfarina, it expects to reach a lucrative and mutually beneficial deal to be acquired by Mahindra & Mahindra in only a few weeks. Negotiations are being held between creditor banks, Pincar, the company’s controlling shareholder and Mahindra & Mahindra. The acquisition of Pininfarina’s shares that are owned by Pincar is the major highlight of these discussions along with debt restructuring according to sources.
Pininfarina has been struggling to keep its business end afloat as more and more carmakers are setting up their in-house design and styling units. This is something that is eating into the business viability and revenues of globally acclaimed design icons and firms like Pininfarina. This acquisition may well prove to be a watershed moment for Mahindra & Mahindra as it finally incorporates a major design entity within its own stable. This can lead to some exciting products and collaborations over the years according to industry sources familiar with the development.