Pininfarina forced to make cutbacks
Automotive News is reporting that despite higher revenue and increased production, coachbuilder Pininfarina is scaling back on staff. Ten percent of the workforce will be let go. Pininfarina says that they had seen a pretty strong period of growth recently with five new models coming out (plus the one-off Ferrari P4/5 among other high-profile projects), and is now hitting a letdown period. Altogether 235 people will be getting their pink slips as a result. Pininfarina is currently building the Alfa Romeo Brera coupe and Spider, Ford Focus Coupe Cabriolet and Mitsubishi Colt CZC in Italy, and the Volvo C70 in Sweden. Only the Italian plants will be affected. They think the workforce reduction will return the company to profitability. It seems amazing that despite growing from a production level of 8,000 units in 2005 to 35,000 units in 2006, the company's €13.8 million ($18 mil) profit turned into a €13.4 million ($17.4 mil) net loss over that period of time. Even at a time when revenue has gone up 68.5 percent to €459.1 million ($597.8 mil).
[Source: Automotive News, sub req]
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