Indian firm close to deal to buy Pininfarina
Mahindra pursues the company that has designed some of the most totemic Ferrari models
Mahindra & Mahindra Ltd., India’s largest maker of sportutility vehicles, is in the final stages of negotiations to buy Italian auto-design firm Pininfarina SpA, according to people familiar with the matter.
Mahindra may reach an agreement to purchase the company that has designed some of the most iconic Ferrari sports cars, said the people, who asked not to be identified because the discussions are private. Representatives for Mahindra and Pininfarina declined to comment.
While other potential bidders have expressed interest in buying the Turin-based creator of the Ferrari California T roadster, Mahindra is favoured by the Pininfarina family and its creditor banks because the Indian company is seen as providing stability through its position in the auto industry, the people said. Negotiations are continuing and could still fall apart, the people said.
The Italian company was founded in 1930 and has designed automotive classics such as the Ferrari 250 GT and Alfa Romeo Giulietta Spider from the 1950s. Pininfarina has been unprofitable for 10 of the past 11 years while struggling with debt and a floundering division that built cars for other manufacturers, a business it shut three years ago. It would be the latest Italian company to be purchased by a foreign buyer as the country struggles to emerge from a cycle of recessions.
Pininfarina’s controlling shareholder, Pincar Srl, confirmed Mumbai-based Mahindra’s interest on March 26. The Pininfarina family’s investment vehicle said it has been reviewing several options for the design firm jointly with its financial institutions.
Pincar, which owns about 76 per cent of Pininfarina’s stock, ceded control of the stake to banks as a guarantee for debt restructuring in 2012. Those creditors also need to approve a sale.
The designer already co-operates with Mahindra on SUV development and worked with it on the Halo electric sportscar concept presented at the Delhi auto show last year. Pininfarina could help Mahindra add flair to the Indian manufacturer’s namesake brand and its South Korean carmaking unit Ssangyong.
Other models that Pininfarina has designed include the Rolls-Royce Camargue, Cadillac Allante and Maserati Quattroporte. The company has branched out to design projects aside from autos, including residential apartment towers, vending machines and toothbrushes.