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Italian coachbuilder and design house Pininfarina will be ending its car production operations, the company has announced. Pininfarina will be laying-off 127 workers as part of its production shut-down.

The shut-down includes ending production of the Bluecar EV.

"Unfortunately we are having to stop our production activities, given the way the car market is. So we are focusing on design and engineering," said a Pininfarina spokesman.

Pininfarina is one of the most storied automotive design houses in Italy, responsible for designing nearly every Ferrari model since the early 1950s.

But the family-owned company has been facing financial problem for years. In December 2008, the company entered into a debt restructuring deal with several banks in which the owners, the Pininfarina family, agreed to sell-off a majority stake of the Pincar company, as it is called.

But the sale has yet to happen. Interested parties have included Tata Motors and French billionaire Vincent Bollore.

Gallery: Pininfarina lays off 127 workers - car production to end

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