Report – India’s Mahindra close to Pininfarina purchase image

Indian automaker Mahindra & Mahindra, the country’s biggest producer of sport utility vehicles, is very close to sign a deal to acquire Italian design and engineering firm Pininfarina, according to the latest report.

The sources that have knowledge of the matter, which opted to remain anonymous ahead of a public announcement, said the Indian producer and the Italian design studio are now in the final stages of discussions. The people added the companies might announce a deal as early as next week – with Pininfarina being the Italian company that has intrinsically intertwined its name with some of the most revered Ferrari creations. The sources added that some interested parties – other than India’s vehicle maker – also expressed a desire to enter negotiations to purchase the iconic firm. But, the Pininfarina family and its creditor banks mostly favor Mahindra as the Indian maker is seen large enough to bring stability to the studio thanks to its power position in the auto sector. Negotiations have not been ended and could also end without an agreement, further said the people.

Pininfarina was established back in 1930 and through the decades has designed numerous automotive marvels, but the company has been hit by rough patches for the past decade or so – becoming indebt and having to axe its car division that produced vehicles for other manufacturers. Pininfarina is also the latest Italian name to be acquired by a foreign company from Asia as the country itself has been struggling to recuperate its economy from a series of downturns.

Via Automotive News Europe