Pininfarina has announced they expect to finalize the deal with Mahindra & Mahindra in the next few weeks.
The Mahindra-Pininfarina deal certainly had its ups and downs in the last few months, but now the transaction is almost finalized as the Italian car designer has announced they will likely sign the papers in the next few weeks. We remind you that back in March we heard controlling shareholder Pincar saying that Mahindra & Mahindra is interested in acquiring the troubled design house. The two parties actually reached an agreement several months later, but the creditors were not pleased with the deal as it stipulated erasing half of the €87 million debt.
Now, everything seems to be in order and the deal is expected to go official in the coming weeks. Pininfarina has been hemorrhaging money for 10 of the past 11 years and in the first half of 2015 they posted a net debt of €52.7 million. It’s hard to see such a famed design house in massive financial trouble, but hopefully things will take a turn for the better once Mahindra will have full control.
One of the reasons why Pininfarina is in such bad shape has to do with the fact that many automakers prefer to hire more in-house designers rather than subcontract the design process. As a refresher, the last car to wear Pininfarina’s signature is the South East Motor (SEM) DX7, an SUV that made its debut earlier this year at Auto Shanghai.