Rumour: Pininfarina, Mahindra to strike deal in a few weeks

Earlier this year, there were reports that Mahindra was planning to acquire Pininfarina. However, the deal did not gone through due to opposition from some of Pininfarina's creditor banks.

Now, according to media reports, the two companies are set to strike a deal in the coming weeks, which will pave the way for the Indian company to complete the acquisition of the Italian design firm.

Over the years, Pininfarina has designed cars for renowned carmakers such as Ferrari, Maserati, Rolls-Royce, Alfa Romeo and Cadillac among others. However, with manufacturers shifting to in-house designers for their new products, the company's  business has dropped considerably. At the end of June 2015, its net debt amounted to $ 57 million.

At present, Pininfarina designs a range of products such as toothbrushes, vending machines and even residential buildings. The Turin-based company, which has been in business since 1930, has been making losses for many years now.

Source: ET Auto