As reported earlier, Italian design house and coach builders Pininfarina are being eyed by Mahindra & Mahindra. Final talks are underway as we speak, and the Indian conglomerate hopes to seal the deal by the end of this year (2015).
However, the report also adds that all’s not in favour of Mahindra yet, as talks could still fall out. Discussions were pushed only recently by both ends, after reports that Pincar, Pininfarina’s controlling investor, was going to be liquidated because of doubts that an agreement could be reached between Pinifarina’s creditors and Mahindra.
Pininfarina, their honey dipped legacy not withstanding, is reportedly reeling under debts to the tune of €52.7 million (INR 375 Crore). According to the report by Automotive News, Mahindra & Mahindra has offered to settle the debts, apart from infusing new capital into the ailing design house.
The deal, if sealed, will mark Mahindra’s third major takeover in the automotive sector, following its acquisitions of South Korean carmaker Ssangyong and the scooter unit of French auto manufacturer PSA/Peugeot-Citroen. Pininfarina, which has a lineage that tails all the way back till 1930, with over a 100 Ferrari’s to its name, along with numerous Alfas, Lancias and Rollers, has already cooperated with Mahindra regarding the TUV300’s styling.
Source: Automotive News Europe