September to bring some hope for the disaster stuck Pininfarina

MANILA : An Italian product, Pininfarina holds a strong grip in automobile designing since 1930. Since then, it has collaborated with a number of carmakers ranging from top players like Ferrari, Alfa Romeo, Peugeot, Fiat, and Lanica. The new emerging players in the Asian market have also been benefited from its great artwork, but lately things doesn't seem to be working great for this designing company. Dark clouds of Financial problems seems to hail over it, and the condition have further worsened with another fail attempt to make a sale, this time to the Indian automobile giant Mahindra and Mahindra.

Third time in a row, Pininfarina has failed a negotiation, leaving it alone to witness its downfall. As per the sources, the Italian designing firm was unable to clinch a deal as its 'majority shareholder' Picar and banking creditors failed to agree a sale.

Coming September seems to bring a second revival chance for this Italian craftsman, as the talks would resume once between the two companies. Although, it is rumored that Mahindra it acting very cautious and plans to invest as little as possible in the deal.

In the meantime, Pininfarina have started drafting a stand-alone business plan in lieu of its ever-worsening financial position. The company statement read, “Although, it hopes for a positive outcome of ongoing talks (with Mahindra), the board is working on new standalone business and financial plan more in line with the group's current ability to generate cash to repay its debt."

Pininfarina suffered a net loss of 4.4 million Euros, and its debt stood at 52.7 million euro at the end of June. This made it clear that the company is in urgent need of help and cannot afford to waste any more time.

Read More: Mahindra & Mahindra Bids Again to Acquire Pininfarina