DESIGN TRENDS
Design guru Glynn Kerr discusses the implications of ambitious acquisitions by automotive behemoths
TO MOST MOTORCYCLISTS,
the name Pininfarina has little relevance. Some may recall the Air-Flow Helmet study released at the 2009 Milan EICMA (I completely failed to notice it), while Pininfarina themselves would no doubt prefer their most infamous foray into two-wheelers, the Morbidelli V8, to be forgotten entirely. To be fair, the final ‘production’ version was a huge improvement over the prototype, which had a face that resembled someone wearing welding goggles, but by then the damage had been done.
To an automotive enthusiast, though, Pininfarina has been the creator of drop-dead gorgeous sports cars since the 1930s. Among them are the Alfa Romeo Spider Veloce, one of which currently resides in my garage, and virtually every Ferrari ever built. More than just a design studio, Pininfarina has low-volume production capabilities, enough to take over manufacture under its own name when FIAT decided to halt production of its 124 Spider in 1982. From the 1960s, rival Bertone may have created more dramatic designs, but no other coachbuilder can boast of the consistency and refined beauty of Pininfarina. It is the Yves Saint Laurent of the automotive industry.
So it came as something of a surprise when it was announced in December last year that the Mahindra Group of India had bought a 76 per cent stake in the Italian coach-builder, with plans to expand its ownership to 100 per cent. The purchase price of approximately $28 million (Rs 187 crore) included guarantees to creditors of over $125 million (Rs 837 crore) (which explains the urgency of Pininfarina’s predicament), along with a further investment in the company of $20 million (Rs 134 crore). But Pininfarina under Indian ownership? Mama mia!
Outside their home market, Mahindra are probably best known as jeep manufacturers, having produced the American Willys under licence since 1947. They expanded into light commercial vehicles, and are currently the world’s leading tractor manufacturer. Following automotive trends, Mahindra have also focused on the growing SUV market,
and produce luxury 4WD wagons of their own design. The Mahindra Group, worth about $17 billion (Rs 1,13,900 crore) globally, has tentacles that reach into fields such as industrial equipment, aerospace, defence, logistics and real estate. But to many, the name is synonymous with vehicle production. In addition to Pininfarina, other recent acquisitions include Reva Electric Vehicles, and a controlling stake in South Korea’s SsangYong Motor Company.
With diverse interests throughout the automotive sector, expansion into motorised two-wheelers was a logical development. Mahindra Two Wheelers Ltd was created in 2008 on the acquisition of the Kinetic Motor Company, an earlier Honda partner, producing predominantly two-stroke step-through mopeds and scooters. This instantly launched Mahindra as a motorcycle manufacturer, although the image of sturdy jeeps and tractors was far removed from the relatively flimsylooking Kinetic products aimed predominantly at female riders. Whereas something akin to a Honda Ruckus or Yamaha BWs would have complemented Mahindra’s image perfectly, buying into an existing product meant the company got what it was given. All it could do in the short term was change the badge.
Around the same time, Mahindra acquired a 70 per cent stake in the motorcycle R&D company, Engines Engineering (EE) S.p.A. Though most readers may never have heard of the company, EE was established in 1979, and provides a full service of development consulting from concept to production, industrialisation and marketing from its 32,300-square foot Bologna facility. Past clients include Benelli, Ducati, Gilera, Honda, Malaguti, Yamaha and Royal Enfield. This is big league stuff.
Once under Mahindra ownership, EE was tasked with helping develop a range of small motorcycles, up-market from Kinetic’s products, as well as launching the 250-cc four-stroke Moto3 racing programme for the 2012 season. The latter has seen some success, including a win in Assen on 26 June this year at the hands of 19-year-old Pecco Bagnaia. Again, though, the project didn’t start from a clean sheet, with Mahindra taking over an existing 125-cc two-stroke design, with which it competed with limited success in 2011. Nevertheless, it was the first time an Indian manufacturer has competed in MotoGP.
In an attempt to target the largest piece of the pie, Mahindra’s first production model, the 110-cc Stallio, hit the strongly-contested commuter category in the Indian market in 2011. It featured a Chinese-supplied engine, and was promptly withdrawn due to
Outside their home market, Mahindra are probably best known as Jeep manufacturers, having produced the American Willys under licence since 1947
mechanical issues. Two years later, it reappeared as the Pantero with a locally-built engine to a surprisingly charitable media, which gave it a tentative thumbsup. Pulling your first product for two years isn’t usually a sign of sound engineering or good management.
Unveiled alongside the Stallio in 2010 was the prototype of an up-market model, the Mojo. It was heavily based on the Malaguti ‘Super Climber’, a Yamaha XT600-powered design study produced by EE and unveiled at the 2001 Bologna Motor Show. By the following year, lower bars and alloy wheels had been added, and the study had been renamed ‘Café Racer’, while to confuse the story even further, the same design also appeared as a 250-cc twostroke at the 2008 Tokyo Motor Show and described as a supermoto. Er.....?
Initially, the Mojo was to be powered by a 292-cc fuel-injected engine supplied by Loncin in China; but having learnt the lessons from the Stallio debacle, a lengthy period of refinement followed. The final production model, looking quite different from the original, was released to the public in late 2015. There seems to be some confusion as to its character — the sporty Café Racer has become something of a cruiser in the interim — but it is finally available at domestic dealerships. During the transition, the styling has lost the purity of EE’s original concept, with awkward proportions augmented by fussy ornamentation which spoils the flow. The various elements now compete for attention, rather than complementing each other, but this is an educational process. Like with the mechanical side, the aesthetic learning cycle at Mahindra has been rapid in just a few years.
The Pantero has since been replaced by the Centuro, on which Mahindra have correctly attempted to find some level of corporate identity. This has been achieved through mirroring the twin frame tubes of the Mojo, although in the case of the Centuro, this is purely a decorative gesture. The frame tubes are dummies, as are the aluminium-looking outriggers, adding weight, cost and complexity to a basic and functional design.
In a move that had some industry analysts scratching their heads, EE was sold back to Alberto Strazzari, EE’s CEO, in 2012. Mahindra’s official statement explained, “Some of the customers in developing markets were not comfortable with the close association of EE (Engines Engineering) with MES (Mahindra Engineering Services) and Mahindra Two Wheelers. Given the fact that the large majority of MES revenue derived from the services it provides to non M&M customers and protects their intellectual property by adequate firewalls, this discomfort appeared more emotional than rational.” Either way, it seems rather short-sighted that this
aspect was not considered at the outset. In the R&D business, confidentiality is everything. Shortly after the split, EE formed a partnership with Hero MotoCorp, the world’s most prolific motorcycle manufacturer and Mahindra Two Wheeler’s most successful rival in the Indian market, which compounded the effects of the U-turn.
In addition to Mahindra’s conventional ICE models, there are the GenZe electric bikes, designed in Silicon Valley and built in Michigan in the good old U S of A. The e101 is a cool-looking, understated mountain bike that hides its battery in the forward frame tube, and powers a discreet hub motor in the rear wheel. And then there’s the 2.0 Electric Scooter. Hmm. To start with, the back wheel is smaller than the front wheel. That looked dumb on the 1894 Hildebrand & Wolfmüller, the world’s first production motorcycle, and custom bikes apart, everyone since has learnt that’s a no-no. The main body design goes all out to make a strong statement in a market where most riders would prefer to go unnoticed. It’s an electric moped. Nobody wants to make a fashion statement on an electric moped, and however great its function may be, something tells me sales are going to be below predictions unless someone brings the look and the function more in line.
On an even more international level, in January 2015, Mahindra acquired the controlling stake in Peugeot Motorcycles, although at this point most folk would be blissfully unaware of it. Now, it’s rumoured to be looking at buying MV Agusta, currently hovering on the brink of bankruptcy, which, alongside building astonishingly detailed motorcycles, is what the company seems to do best. Should this alarm or reassure us? That depends on the management strategy. Jaguar and Land Rover have thrived under Tata’s ownership, because they’ve been encouraged to continue being themselves, only with secure funding. I wrote something similar about Ducati in April 2012 on news of the Audi buy-out when everyone was spouting doom and gloom, and predicting the end of the Italian character. Has Ducati become Germanic in the interim? Nope. Likewise, Peugeot, MV Agusta, and whatever further companies Mahindra has bought by the time this goes to press will do just fine if they’re allowed to continue doing their own thing.
My main concern is for the parent company, and its future. Chairman and Managing Director Anand Mahindra predicts a volume of about three-four million two-wheelers by 2020. But due to its various acquisitions, Mahindra Two Wheelers presents a veritable smorgasbord of products with little product or image coherency. Most of the bikes were designed for different companies and, in some cases, for different countries or different functions. Few were purpose-built for India, and none speak the same design language as the tough jeeps that survive the hardships of the local terrain. Today’s luxury SUVs are a far cry from that early Willys, but the DNA string is evident, and is an essential part of the marketing strategy. How long will it take for someone in upper management to make that connection to the Two Wheeler division?