Pininfarina is in a terrible financial shape these days, but they hope to restart negotiations with Mahindra for a buyout.

At the end of June we heard banks have denied the deal between Pininfarina and Mahindra because the contract stipulated erasing half of the debt. Although the plan has fallen through, the two parties are expected to restart the negotiation process next month, but a source close to the Indian company is "very cautious" as Mahindra apparently wants to buy Pininfarina "at the lowest possible price."

In the meantime, the famous Italian design house has started elaborating a standalone business plan as a desperate move to stay afloat. However, the future doesn't look bright at all since Pininfarina posted a €4.4 million net loss in the first six months of the year and at the end of June it had a total net debt of €52.7 million, representing a significant increase compared to the end of December when they owed €44.8 million.

Gallery: Pininfarina’s future looks grim; negotiations with Mahindra to restart in September

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