Pininfarina, the prestigious Italian designer and coachbuilder, is struggling under financial strains after negotiations with Indian car manufacturer Mahindra & Mahindra failed.
According to Reuters, Pininfarina’s controlling shareholder, Pincar, failed to agree a sale of the indebted group to Mahindra this month. Still, negotiations are bound to resume in September, although the Indian giant treats the issue with caution, looking to invest in Pininfarina “at the lowest possible price”.
In the meantime, Pininfarina has also begun drafting a stand-alone business plan, as its financial position worsens – according to a statement released by the company:
“Although it hopes for a positive outcome of ongoing talks (with Mahindra), the board is working on new standalone business and financial plan more in line with the group’s current ability to generate cash to repay its debt.”
Just so you know, Pininfarina reported a total debt of 52.7 million at the end of June.