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Old 25th March 2015, 18:44   #1
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Default Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

After the acquisition of Korean automaker SsangYong and French two-wheeler manufacturer Peugeot, Indian utility vehicle manufacturer Mahindra, is rumoured to be considering taking over Italian automobile design firm Pininfarina.

According to a report by Live Mint, talks between the two companies are in progress. For 10 out of the past 11 years, Pininfarina has been struggling with debt. This year, its shares have risen 28% and the company is valued at € 121 million ($ 133 million). If the deal does go through, the Turin-based company would be the latest in the line of Italian companies to fall into foreign hands.

Pininfarina started operations in 1930. Over the years, it has designed cars for renowned manufacturers such as Ferrari, Rolls-Royce, Alfa Romeo, Cadillac and Maserati among others. The company has also been working with Mahindra on development of SUVs and has played a part in designing the Halo electric concept car, which was showcased at the 2014 Auto Expo.

Three years ago, Pininfarina discontinued large scale production for car manufacturers and shut down its factories. At present, apart from cars, it is designing residential apartment towers, vending machines and toothbrushes among others.
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Old 25th March 2015, 20:47   #2
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Default re: Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

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Originally Posted by Aditya View Post
Over the years, it has designed cars for renowned manufacturers such as Ferrari, Rolls-Royce, Alfa Romeo, Cadillac and Maserati among others.
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At present, apart from cars, it is designing residential apartment towers, vending machines and toothbrushes among others.
I cannot afford a Rolls-Royce but I can claim that my toothbrush was designed by the same company that designed a Rolls-Royce and I'm sure many BHPians will agree

Some quick googling later, I came across this page: http://www.hul.co.in/innovation/coll...ng/brushingup/

Quote:
For our ground-breaking Signal Style Tech model, we partnered with leading Italian design house Pininfarina. Better known for its long-running collaboration with sports car maker Ferrari, Pininfarina was the perfect match to deliver excellence in creativity as well as exceptional performance. Inspired by the tools of professional dentists, the delicate yet strong design heralds a new generation of products.
So it seems Hindustan Uniliver Limited's Signal Style Tech toothbrush is the one designed by Pininfarina.

Next task is to locate it in the market
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Old 27th March 2015, 00:20   #3
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Default Mahindra reportedly in talks to buy Pininfarina!

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Mahindra & Mahindra Ltd., India’s largest maker of sport-utility vehicles, is in talks to buy Italian auto design and engineering company Pininfarina SpA, according to people familiar with the matter.

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 surged 26 percent Wednesday, the biggest gain in almost four years, lifting the company’s value to 155 million euros ($170 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.
I read this with skepticism after Mahindra's supposed buyout of Ducati that eventually went to Audi. But if Mahindra does manage to score this buy, I really hope it doesn't dig them into some deep financial hole.

I cannot see how a designer for cars like Ferrari, Alfa Romeo, Maserati can ever be financially suitable for a manufacturer of regular, average road cars.

Source: Bloomberg
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Old 27th March 2015, 00:24   #4
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Default Re: Mahindra reportedly in talks to buy Pininfarina!

'Prestige' value aside, I really don't see how the design house fits into Mahindra's scheme of things, given they primarily continue to be utility and commercial vehicle manufacturers. The only 'cars' in their catalog are Dacia/Renault derivatives.

Last edited by Chetan_Rao : 27th March 2015 at 00:40.
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Old 27th March 2015, 09:19   #5
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Default re: Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

An interesting article on the rumours of the pending deal between Mahindra and Pininfarina.

http://jalopnik.com/heres-what-could...ina-1693842271

Quote:
The luxury car market — especially in America— is one I think Mahindra is interested in, but so far hasn't had the right hand to enter. When Mahindra bought SsangYong, they did view it as a way to move upmarket, and while that worked, the SsangYong brand has pretty much zero meaning in the US, and was not a good fit. If Mahindra wants to come play in the premium car space, they need to do something more than make up a fancy name.

They need a lineage, pedigree, and name recognition, and Pininfarina gives them all that. Plus, it's sort of an open secret that after all these decades of designing beautiful cars for other companies and getting a little fender badge at best, Pininfarina (especially Paolo Pininfarina, the chairman) would love to finally build cars under the Pininfarina name. One anonymous source called it his "wet dream."
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Old 27th March 2015, 09:36   #6
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Default re: Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

Good to see Indian cos going posh. This buy indicates aesthetic sense, and maybe their new vehicles will be styled better.
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Old 27th March 2015, 21:20   #7
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Default Re: Mahindra reportedly in talks to buy Pininfarina!

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Originally Posted by Chetan_Rao View Post
'Prestige' value aside, I really don't see how the design house fits into Mahindra's scheme of things, given they primarily continue to be utility and commercial vehicle manufacturers. The only 'cars' in their catalog are Dacia/Renault derivatives.
A company with 12 year on year losses means something is fundamentally wrong with the managements or they have some core issues. Otherwise a company like this cannot be expected to make losses.

As is the case with many Italian companies, money is needed to bring them out of their bad times and inspiration which is clearly lacking in that region.

Many of us had the same feeling with TATA dipped their hands in the dirt that came along with JLR at that time.

But TATA has managed to turn it around atleast for now.

Im sure, Mahindra is not looking at this buy keeping in mind its immediate benefit considering its current line of products.

This will be an individual business I guess but under the control of Mahindra.

Besides, 600 Mil Eur is not a big money. Two - Three sucessful mass producing launches will get back your investment in no time.

Like TATAs spent close to 600 Cr to design and develop the Zest I think. Somebody was mentioning about this on the forum.
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Old 17th April 2015, 13:08   #8
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Default re: Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

An article in today's Economic Times claimed favorability of Mahindra by Pininfarina.

Quote:
Mahindra is favoured by the Pininfarina family and its creditor banks because it is seen as providing stability through its position in the auto industry , the people said
I think an opportunity for Pininfarina to be a stand-alone brand might be a key negotiating factor during acquisition.

Article Link
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Old 29th June 2015, 16:29   #9
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Default re: Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

Mahindra's bid to take over Pininfarina has been rejected by the Italian company's creditors.

Link to Team-BHP News Article
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Old 29th June 2015, 17:03   #10
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Default re: Rumour: Mahindra looking to take over Pininfarina. EDIT: Will purchase 76.06% shares

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Originally Posted by Aditya View Post
Mahindra's bid to take over Pininfarina has been rejected by the Italian company's creditors.

If Mahindra is serious, it may come around and rework the deal taking the creditors opposition into account.


This may not be too difficult since Pininfarina's share prices had increased following the news that Mahindra may take them over, reflecting the market sentiment that the deal would be beneficial to both companies and Mahindra can, ultimately turn around this loss making entity.
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