MILAN — With a profit now on its books for the first half, Pininfarina has completed its turnaround under Indian majority owner Mahindra & Mahindra and is moving forward with a new business plan.
The Italian coachbuilding and design company, which posted a 3.1 million-euro (about $3.6 million) net profit for the first six months, has a new strategy based on two business areas — engineering and design — that have been split into separate legal entities, Pininfarina Engineering and Pininfarina S.p.A.
"We are back to being a coachbuilder," Pininfarina S.p.A. CEO Silvio Angori told investors Sept. 4 in a presentation at the Milan stock exchange.
The engineering side of the business employs 450 in Italy and Germany out of a group total of 626 as of June 30. Its four main customers accounted for 60 percent of the group revenue in 2017: BMW, 22 percent; Ferrari, 16 percent; China’s Hybrid Kinetic Group, 14 percent; and Iranian automaker Khodro, 8 percent.
The contracts with Khodro were frozen after the recently announced U.S. sanctions against Iran. Angori saw no need to alter the revenue or profit guidance because Pininfarina “has been able to replace the contract with business from other clients.”
As for the design business, Pininfarina has announced it will strengthen its presence in the United States at the beginning of 2019 with a new design center in Los Angeles. Pininfarina aims to “grow its market share and brand recognition in North America,” Angori said.