Mahindra and Mahindra Limited has been well known as the the country's largest Utility Vehicle maker. As stated to Bloomberg, in order to further strengthen its brand on the design front the company has been planning on roping-in Italian auto design and engineering company Pininfarina SpA. As of now the discussion on the subject is on, and more details may be revealed later.
Mahindra is closing in on the purchase of the company that designed the Ferrari Testarossa after weeks of talks, said the people, who asked not to be identified because the discussions are private. Negotiations are continuing and could still fall apart, the people said. Pininfarina’s shares have risen 28% this year, valuing the company at €121 million ($133 million).
Pininfarina was founded in 1930 and has designed automotive classics like the Ferrari 250 GT and Alfa Romeo Giulietta Spider from the 1950s. The Turin-based company has posted losses in 10 of the past 11 years as it struggled with debt and a floundering business to manufacture cars for other companies. It would be the latest in a series of Italian companies to fall into foreign hands as the country struggles to emerge from a cycle of recessions.
Pininfarina cooperates with Mumbai-based Mahindra on SUV development and worked with the Indian company on the Halo electric sports-car concept presented at the Delhi auto show last year. A spokesman for Pininfarina said Mahindra is a client and the two companies have a very good relationship. He declined to comment on takeover talks. A representative for Mahindra said the company doesn’t comment on speculation.
