Pininfarina to be owned by Indian group Mahindra

Rome - Still another historic piece of Italian industry will be handed over to a foreign owner. Pininfarina, an automotive bodywork manufacturer that originated in Turin in 1930, has been purchased by the Indian group Mahindra for 50 million euro, plus 110 million to cover debts. The Indian group, an SUV manufacturer, will purchase 76 percent of the capital of the Pininfarina family holding, Pincar, at 1.10 euro per share. This will bring to an end to a long-time crisis for the Italian company which, in 10 of the past 11 years, had balance sheets in the red. The stock exchange did not react positively to this announcement, where the stock was suspended in the morning and later closed with a theoretical drop of over 68 percent. "A long negotiation has finally come to an end. We hope that, with Mahindra's acquisition, Pininfarina, despite being weaker than in the past but still a significant Italian industrial asset, will turn out to be stronger," said Turin's trade union FIOM's secretary, Federico Bellono. "We need to contact the new owners to check on investments, refund debts and assess the employment shift it will produce, thus strengthening not only the brand but also the skills and the knowhow of the company. Of course, this will have repercussions on workers, but Italy's industry will have to be considered." Paolo Pininfarina, president of the group, sounded more enthusiastic, and said that this "is a special day". "Pininfarina is becoming stronger and more global than ever. In a globalised world, entrepreneurship and capital do not need passports. I am sure that my grandfather, my father and my brother Andrea are proud of us today, and they are supporting me and the entire family as we celebrate the future of our beloved Pininfarina, " said the grandchild of the founder. He added that he is sure the agreement will "secure the company's heart and mind to remain in Italy." "Today we are starting to write the second chapter of Pininfarina's story. We are proud and happy to enter the Mahindra group," said the group's CEO, Silvio Pietro Angori. Techmahindra's CEO, Cp Gurnani, the buyer, expressed his satisfaction by saying, "It is an honour for us to start a collaboration with the legendary family Pininfarina, to continue growing with them. The Pininfarina brand will remain in Italy. For us it is as iconic a brand as Fiat, Ferrari and Vespa. It will remain Italian, although it can be sold abroad and expand the scope in which it operates." (AGI).

december 14 2015