Pininfarina is going to close down it's production activities in San Giorgio.
As a result sadly over 100 employees will lose their jobs.
What remains are design and engineering facilities.

Quoting their website:
Turin, October 11, 2011 – Pininfarina S.p.A. announces that, today, it began to carry out the procedures required by current regulations for the purpose of implementing a long-term unemployment benefit plan for termination of production activities and staff downsizing, due to the absence of conditions suitable for continuing to operate the production activities.

The long-term unemployment benefit procedure will apply to 127 employees of the production sector and of directly and indirectly related units.

This transaction will result in a direct charge of 2.9 million euros for contributions to social security institutions and indemnities required pursuant to law, plus a payment of about 2.5 million euros to liquidate the provision for termination indemnities, which will be distributed upon completion of the procedure, with no impact on the income statement.

Has it gone under, or is it down-sizing?

Pininfarina is for sale. Everything of it. The future is not certain at this moment. Although I'd be surprised if no-one would come and buy the design branch, which has been very succesful.

Let's hope it doesn't go the way of Ghia, just to become a stick on badge for 'luxury' or similar. I guess Fiat should buy them, perhaps via Ferrari, although for quit some time Abarth was just a stick on badge, not so much now though