Mahindra & Mahindra, India's largest SUV maker, is in the final stages to buy Pininfarina.

Mahindra & Mahindra, India's largest maker of SUVs, is in the final stages of negotiations to buy Italian design and engineering firm Pininfarina, according to people familiar with the matter.

Mahindra may reach an agreement to purchase the company that has designed some of the most iconic Ferrari sports cars as early as next week, said the people, who asked not to be identified because the discussions are private.

Representatives for Mahindra and Pininfarina declined to comment.

While other potential bidders have expressed interest in buying the Turin-based creator of the Ferrari California T roadster, Mahindra is favored by the Pininfarina family and its creditor banks because the Indian company is seen as providing stability through its position in the auto industry, the people said.

Negotiations are continuing and could still fall apart, the people said.

Pininfarina was founded in 1930 and has designed automotive classics such as the Ferrari 250 GT and Alfa Romeo Giulietta Spider from the 1950s.

The company has been unprofitable for 10 of the past 11 years while struggling with debt and a floundering division that built cars for other manufacturers, a business it shut three years ago.

Pininfarina would be the latest Italian company to be purchased by a foreign buyer as the country struggles to emerge from a cycle of recessions.

Owner's review

Pininfarina's controlling shareholder, Pincar Srl, confirmed Mumbai-based Mahindra's interest on March 26. The Pininfarina family's investment vehicle said it has been reviewing several options for the design firm jointly with its financial institutions.

Pincar, which owns about 76 percent of Pininfarina's stock, ceded control of the stake to banks as a guarantee for debt restructuring in 2012. Those creditors also need to approve any sale.

Pininfarina shares have gained about 35 percent since Bloomberg reported on March 25 the talks with Mahindra. The stock was trading Wednesday at 5.73 euros, valuing the company at 168 million euros ($179 million).

The designer already cooperates with Mahindra on SUV development and worked with it on the Halo electric sports car concept presented at the Delhi auto show last year.

Pininfarina could help Mahindra add flair to the Indian manufacturer's namesake brand and its South Korean car making unit SsangYong, which also specializes in SUVs.

Other models that Pininfarina has designed include the Rolls-Royce Camargue, Cadillac Allante and Maserati Quattroporte.

The company has branched out to non-automotive design projects, including residential apartment towers, vending machines and toothbrushes.

Mahindra, which bought controlling stakes in SsangYong in 2011 and PSA/Peugeot-Citroen's scooter unit earlier this year, had 82.6 billion rupees ($1.3 billion) in cash and short-term investments at the end of its fiscal year on March 31, 2014, according to data compiled by Bloomberg. The manufacturer is scheduled to release fiscal 2015 earnings figures in May.

After the reveal of the new Fabia last week, we get the first interior shots, ewww, Bland.

• New ŠKODA Fabia: functional and full of emotion; compact outer dimensions, generous interior
• Perfect everyday companion: spacious, practical, clever and nimble
• Largest boot capacity within its class: 330 litres; 17 ‘Simply Clever’ features

The new ŠKODA Fabia not only impresses with its emotionally-charged design; the car is also cleverer and more practical than ever before. The new model has enough space for 5 occupants and their luggage, yet thanks to its compact footprint, it is extremely agile and nimble. The boot is the largest within the small car segment.In typical ŠKODA style, the new Fabia has a total of 17 ‘Simply Clever’ features, nine of which are new.

“The new ŠKODA Fabia is a real champion in terms of practicality, offering a wide variety of opportunities for use – it is the ideal car for modern yet practical urban mobility and also possesses the perfect combination of functionality and emotionally-rich design,” says Dr Frank Welsch, ŠKODA Board Member for Technical Development.

The ŠKODA Fabia provides lots of space for occupants and their luggage. The interior passenger space is slightly longer and larger than in the previous model and at the same time provides the driver and passengers with increased headroom. Although the new ŠKODA Fabia is 8 mm shorter than its predecessor, its interior length has increased by around 8 mm to 1,674 mm. Elbow room is also greater at 1,401 mm (21 mm longer) at the front and 1,386 mm (2 mm longer) at the rear.

The boot is the largest within the car’s segment. The luggage compartment in the new ŠKODA Fabia has a capacity of 330 litres, which is 15 litres more than the previous model and is considerably bigger than comparable competitors’ models. With the rear seats folded down, loading capacity increases to up to 1,150 litres. A spacious rear access width of 1,098 mm, a tailgate that swings open to 1,915 mm and a low sill height make loading easier. The loading area is 960 mm wide, which is 2 cm wider than the previous generation.

‘Simply Clever’ – the new ŠKODA Fabia fits the bill perfectly. Depending on spec, up to nine new ‘Simply Clever’ features are available for the new ŠKODA Fabia.

The new Fabia is the first ŠKODA to feature MirrorLink™ technology. It allows smartphone apps to be displayed on the screen of the infotainment system which, amongst other things, takes the use of navigation software or personal music files to a new level. Connection is quick and easy. Just connect the smartphone to the Bolero system via a USB cable, select and activate MirrorLink™ mode on the radio and MirrorLink™-certified apps will be mirrored on the infotainment system’s display.

The new Fabia now features an ice scraper in the fuel filler cap. The new multimedia device cradle in the centre console is the perfect place to store a mobile phone, smartphone or an iPod. The high-vis vest, now mandatory in many countries, has a convenient dedicated storage compartment in the driver’s door. A rubbish bin is available for the side door. Storage nets on the inside edges of the front seats will hold miscellaneous small items. The new ŠKODA Fabia also provides more space for drinks bottles. Both rear doors will now hold a 0.5-litre bottle and a 1.0-litre bottle will fit in the glove compartment. Therefore, the ŠKODA Fabia now offers space for up to seven bottles: one bottle in each of the front and rear doors, the glove compartment and two bottles in the centre console.

The new ŠKODA Fabia also offers further ‘Simply Clever’ features that proved valuable in the car’s second generation, including the standard parking ticket holder on the inside of the left-hand A-pillar and the two optional bag hooks in the boot. Two storage nets are also available as an option for the boot to keep the area tidy. The hat shelf can be left in its normal position, but can also serve as horizontal partition or be stored vertically behind the rear seats. In addition, an optional flexible storage compartment for the boot will hold miscellaneous objects in place. Another ‘Simply Clever’ feature is the corner light function of the fog lamps.