Pininfarina family to sell 50.6% stake in the company

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Bad times in the auto industry are spreading like wildfire. Italian car design and coachbuilder Pininfarina is the next victim of the declining economy.

Pininfarina is famous for designing cars to manufacturers such as, Ferrari, Maserati, Jaguar, Volvo, Alfa Romeo, Lancia, Cadillac and others. In addition the company has designed trams, trolleys and provided design consultation.

Last year was emotionally hard for the Pininfarina family as company’s CEO Andrea Pininfarina died in a motorcycle accident. Now comes the news that this motoring dynasty is in a huge debt and has agreed to sell its controlling stake in the company.

Pininfarina family will sell 50.6 % stake in the group. Currently Pininfarina Group owes to banks nearly  €600million ($838million). The company will appoint three investment banks by the end of February to advise on the sale.

As part of the agreement, the family is to assume €180m of the company’s debt. Whoever buys the family’s stake in Pininfarina will have to buy out the minority shareholders.

We hope for the best, as it would be sad to see such an iconic company go bankrupt.

Source: FT