|The late Sergio Pininfarina + Ferrari Testarossa|
Iconic Italian carrozzeria Pininfarina has been saved the ignominy of bankruptcy after Indian conglomerate Mahindra & Mahindra bought the company for €168 million.
Tech Mahindra, and Mahindra & Mahindra Group will create a joint venture company to ensure Pinifarina stays in business – a business which has been unprofitable for the last ten years, and whose debts have grown to €52.7 million.
The Indian Group will pay €33 million for the design house; invest €20 million in the ongoing business; and guarantee €114.7 million to its creditors. These are big numbers, but as Paolo Pininfarina said at the completion of the takeover, “We are now owned by a group valued at €15.6 billion, and that will help us develop new business and provide support to our new parent.”
|Paolo Pininfarina and Tech Mahindra's CEO, CP Gurnani|
New business has been difficult to find as more and more carmakers bring all their design in-house. Some, like VWAG have acquired famous names, like Ital Design, which was bought by the German carmaker in 2013.
Pininfarina’s share price has dropped 95% since 2007, but Mahindra & Mahindra intends to retain Pininfarina’s listing on the Milan stock exchange – proving that linking your developing pan-Asian business with an Italian style leader is still worth big bucks in terms of image, and potential to enhance the Indian brand.
|2006 Ferrari P4/5|