Pininfarina Family Gives Up Majority Stake
By Brendan Moore
Automotive News is reporting that Pininfarina needs money and in order to get some, it will propose a 100 million euro ($153 million USD) increase in capital funds to its shareholders. The company intends to use the money to reduce their debt load and to service the remaining debt until a joint venture with Bollore starts producing income. One consequence of the increase in capital funding is that the Pininfarina family will have their controlling shares diluted, thereby relinquishing their majority stake in Pininfarina the company.
Vincent Bollore, the CEO of Bollore, has also stated that he will personally invest in Pininfarina shares.
Pininfarina is more or less betting the company’s future on the Bollore tie-up, scheduled to start production of an electric car in 2010. The company has had no real production to speak of for quite some time, is awash in red ink and looks to the electric car as its salvation.
Pininfarina intends to establish a 7% operating margin on the strength of sales of the electric car, which it intends to sell under the Pininfarina brand in the U.S., Europe and Japan.
Production is forecasted at 15,000 units a year for the first three years.
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