Nobody wants to be making losses in the market, and definitely not a loss of $150 million. Well, Pininfarina Engineering did just that.
Mahindra says bye-bye
Mahindra and Mahindra is liquidating Pininfarina Engineering, a unit of its Italian subsidiary Pininfarina, citing strategic irrelevance of the business and poor market visibility.
The move comes after the Italian firm incurred losses near $150 million, after two international projects fell through.
Making the right moves
This is in line with Mahindra’s effort to exit loss-making ventures that do not hold strategic importance.
The company has so far exited US-based electric bike maker Genze and Australia-based small aircraft manufacturer GippsAero and decided to sell the majority stake in its South Korean subsidiary SsangYong on the block.
Bottom line: Facing such losses, especially during the pandemic, is sure to have severe repercussions on the firm and its revenue.