Good catch Mahindra! Pininfarina is a worthy addition to the portfolio especially if they have global ambitions. However, as a standalone business, I don’t think Pininfarina can be transformed into a moneymaker. The business model that they once thrived by contract designing and building special models/cabriolets in low volumes does not exist anymore. As a car design and styling outfit, they might be able to offer their services to the ambitious Chinese, Indian or other Asian manufacturers; but the ballgame is certainly not the same in this century where all the product planning and development is done in-house by most major automobile manufacturers.
IMO, all things considered, what Mahindra should do at this juncture is to take over a coveted automobile brand and use Pininfarina as their engineering and styling partner. “Designed by Pininfarina” still has enough clout with so many Ferraris going around with PF badging. In other words, they need a JLR to put themselves on the world map. Without beating around the bush, what I have in mind is the once great but dying brand right In Pininfarina’s backyard in Turin, Lanica. If Anand Mahindra can pry out the Lancia brand and related IP from Sergio’s hands, Mahindra could weave it magic to make Lancia great again. In fact, Mahindra probably is one of the few auto giants in existence that can rekindle Lancia and make it a revered brand once again.
Not very many gearheads need introduction to Lancia. If anything, their unmatched record in WRC is renowned. A few years ago, TopGear voted Lancia as the greatest car company ever!! They were very innovative with many firsts in the industry and have tremendous motorsport history and above all, it is very very Italian in all what it has done! Lancia is destined to be retired after the only model Ypsilon runs out of its lifecycle. There is even a petition online urging FIAT not to kill the 110 year old Lancia at
www.change.org and Twitter But with limited funds and focused on Alfa Romeo’s turnaround, the word is that the debt-laden FCA has no choice now but to kill Lancia in the coming years.
Mahindra, on the other hand can benefit greatly with such a storied brand in their portfolio. Yes, it will need a lot of investment, planning and time to make Lancia great again, but Indian conglomerates like Tata and Mahindra have made their marks in doing just that. Mahindra off late has turned around SsangYong and they are doing the same with Peugeot Scooters in France. Peugeot is going Moto3 racing in 2013. People called Ratan Tata a lunatic when the group borrowed money to take over JLR and now his biggest detractors are believers in him. I remember reading somewhere that JLR’s turnaround under Indian ownership has become a modern day MBA school case study. Another near dead brand Lincoln is on comeback trail in America and China with right product planning and investment. The reinvention of Cadillac as a luxury and performance brand is yet another success story to ponder. Both of these brands had to recapture the brand’s core values after straying away for decades of mismanagement. Never say never!
Whether Lancia fans like it or not, SUVs are the rage these days and has almost become a necessity to remain profitable these days. Loss making car companies are being resurrected only after they forayed into SUVs and crossovers. Porsche and Audi became dominant world players with SUVs and more recently, Bentley, Jaguar, Maserati and Lamborghini are jumping on the fray in the next two to three years. Thankfully, Mahindra has an enviable number of platforms for SUVs between their Mahindra and SsangYong brands. Pininfarina can very well do some reskinning and badge engineering initially with currently available models to bring new “Lancia” models to the market quickly. What SIAC has been doing with MG brand is analogous here. SsangYong’s limited but proven European and global network of dealers can easily bring new Lancias to newer markets. How about “Lancia by Pininfarina” badge on all of them?! Then, with time, they can develop models that are relevant to the Lancia brand. Brand building, engineering and expansion in newer markets will definitely take money and time; but it might be worth the exercise for the ambitious and capable Mahindra group.
The only questions are: Is Anand up for the challenge? If yes, will Sergio give away his stepchild to be raised by Indians? Time will tell whether Lancia fans will have something to rejoice!!
PS: If Mahindra was to take over Lancia, what can they do as far as product development and planning is open to discussion here. The only current model Ypsilon is being built in Poland! Let’s discuss immediate and long term models that will Lancia need to be successful. Feel free to indulge in details like platforms, models, engines, markets, EVs etc. Lets’s make the business case for Anand!
In the meanwhile, here are two interesting concept cars that the freelancers have done for Lancia. I am particularly chuffed with the Nuevo Delta. What do you think?
New Delta:
New Stratos (2010):