Pininfarina Still Hopes For Sales Agreement With Mahindra
Italian design house Pininfarina has been in financial trouble for most of the last decade, leading to the end of vehicle production in 2011. After years of living in the red, it was looking like a purchase by Mahindra and Mahindra would keep the designer in business, but shareholders and creditors weren’t able to come to terms on the sale.
It sounds like the major issue is that the Indian automaker is being "very cautious" while attempting to buy the troubled company "at the lowest possible price." This isn’t exactly a positive sign for the deal to go through. Reuters is reporting that recent talks have been put on hold until September, and while there are still hopes of the company being acquired by Mahindra, Pininfarina is also said to be looking at other options.
With this life-saving injection of cash still up in the air, the report goes on to say that Pininfarina is looking to create a contingency plan if the company needs to soldier on as a standalone business. No details were given, but Pininfarina has been warding off insolvency since 2008.
Things haven’t look much better for Pininfarina so far in 2015, as it recently reported a net loss of €4.4 million ($4.8 million) through the first half of this year alone and has taken on an additional €7.9 million ($8.7 million) of debt raising its total current debt to €52.7 million ($57.8 million) during the same six-month period.
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Why it matters
Since its creation in 1930, Pininfarina has given the automotive world some of the best-looking cars ever made (most notably the 1984-1991 Ferrari Testarossa), and while it is best known for its work with Ferrari, it has also designed cars for BMW, Cadillac and even Rolls-Royce. The loss of Pininfarina would be a huge blow to the automotive industry, especially for design-based enthusiasts. I mean, just look at this 2013 Sergio Pininfarina Tribute Concept designed by Pininfarina back in 2013!
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