Pininfarina, could soon be going for an all Indian dining experience if India’s largest manufacturer of SUV’s, Mahindra & Mahindra, make an official offer for the struggling and some might say legendary Italian car design studio.
Good times have been sparse for Pininfarina of late, the go to design studio for Ferrari has been struggling to make ends meet and has become heavily indebted.
Still Pininfarina is valued at 162 million euros and the markets reacted strongly to reports of a potential buyout by Indian conglomerate. As a result Pininfarina’s stock rose by nearly 40 percent.
Mahindra & Mahindra would still need need to over come a few hurdles, it needs to get Pininfarina’s majority shareholder on board, Pincar owns 76 percent, and also the company’s creditors.
The deal is expected to be approved by April 29th however the M&M has said no deal has been officially formalised and that talks are on going.
Pininfarina is already a well known client to Mahindra & Mahindra, however the Italian design company has been unable to play with the budgets of the bigger companies and the studio actually closed down in 2010.
The company still survives although it has become a niche player by diversifying its expertise into architecture, electronics and furniture design.
This switch to different industry specific disciplines didn’t stop Pininfarina from making a net loss of 1.3 million euros last year and its total debt stood at 45 million euros in 2014.