We all know that Mahindra has been negotiating a deal to acquire the legendary Italian automotive design firm Pininfarina for quite some time now. Earlier reports suggested that Pininfarina‘s Italian creditor banks were in disagreement with certain aspects of Mahindra’s proposed agreement but it seems the issue has been sorted out.
Talking to Reuters, the Italian company stated that negotiations between Pincar (Pininfarina’s holding company), creditor banks and Mahindra regarding the acquisition of Pininfarina shares owned by Pincar and debt restructuring never broke off. The design firm is confident that the acquisition deal would be signed in the next few weeks.
It’s to be noted that the design stalwart has been accumulating loss over the past few years. As of June 2015, the company’s current net debt stood at 52.7 milllion euros (around INR 375 cr). The brand which is responsible for some of the world’s most beautiful cars from Ferrari, Maserati, Rolls Royce, Alfa Romeo, etc., has been facing a lack of business since most major automakers now prefer to have a renowned designer in their payroll directly.
Also read – Zetor by Pininfarina tractor concept unveiled
So what does Mahindra gain from a loss making design firm? Apart from the obvious influence of Pininfarina on future products (in fact the TUV300 itself has inputs from the firm), the mere ownership of the hallowed marque would help Mahindra’s global brand image. On the other side, Pininfarina need not be starring down the financial barrel and can fully concentrate of coming up with stunning designs.
Mahindra TUV300 – Photos
Via – Reuters.com