Magna interested in Italian design specialist Pininfarina

Article by Christian A., on November 19, 2010

Three sources told Automotive News Europe that Magna International Inc. is considering a proposal to buy Italian design specialist Pininfarina S.p.A. According to Pininfarina's quarterly earnings report released earlier this month, the company could be sold as soon as Dec. 31. However, the Canadian-Austrian parts supplier and Pininfarina declined to discuss the potential sale.

A source said that Magna is seeking to boost its position as a global supplier of design, engineering and contract manufacturing. Pininfarina's design expertise and engineering know-how are expected to expand the range of services offered by Magna subsidiary Magna Steyr, which has engineers that will complete vehicles and builds cars for many automakers at its assembly plant in Graz, Austria.

Magna had attempted to gain control of Aston Martin from Ford Motor Co. and last year, a consortium led by Magna expected to acquire Opel/Vauxhall from General Motors Co. These two strategies both failed. With the Opel defeat, Magna had chosen to stop pursuing automakers and to concentrate on its core business of supplying parts and services, as well as contract manufacturing.

Pininfarina, which is famous for its legendary sport cars such as the 1966 Alfa Romeo Spider and the 1984 Ferrari Testarossa, had struggled financially for years. It had lost a combined 358 million euros from 2007 to 2009. In August 2009, Pininfarina got the services of Banca Leonardo, a Milan-based merchant bank, to sell a 50.7% stake held by Pincar, the Pininfarina family holding company.

The sale is part of a debt agreement made at the end of 2008 with creditor banks, which canceled 180 million euros in loans as part of the agreement. The proceeds from the sale of the stake will go to the banks. The stake had increased to 76.1% late last year after the banks canceled another 70 million euros in loans. [via autonews - sub. required]

If you liked the article, share on:

Comments

Recommended

It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries