The Italian design house is back. But at what cost?
The incredibly talented and iconic design house Pininfarina has just been purchased by Indian manufacturer Mahindra in a deal worth a reported $185 million. The deal provides Mahindra with a controlling interest of 76.06 percent in the Italian coachbuilder. Mahindra plans to invest roughly $2.2 million into Pininfarina and will provide a guarantee to creditors of approximately $126 million. The acquisition comes after a report that indicated that Pininfarina was in some hot water after racking up a debt of around $57 million.
Speaking at the announcement of the acquisition, Mahindra boss Anand Mahindra stated: "The legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra group. Given the increasing design sensibilities of today's consumers, product design will greatly influence customer choice." The deal is expected to provide Mahindra with the ability to create more relationships with European manufacturers, while Pininfarina's costs of manufacturing will decrease. The relationship between Mahindra and Pininfarina should be beneficial for both parties and we can't wait to see what type of vehicles are made.