Fiat expected to report profit

Fiat SpA, the Italian industrial holding company which owns Fiat, Lancia and Alfa Romeo and controls Chrysler Group, is expected to report a third-quarter operating profit tomorrow as sales of its car brands have grown and overcome declines in sales in its truck and heavy equipment lines.

Although Sergio Marchionne, CEO of both Fiat and Chrysler, is not expected to say much about Chrysler, the company’s European automotive brands are outperforming the market. Even as overall industry sales dropped 6.6 percent, Fiat was up 1.8 percent, Lancia grew by 1.9 percent and Alfa jumped 10.1 percent, giving Fiat SpA 8.8 percent of the European market, a nice improvement from just eight percent a year ago. The Fiat 500 and Panda were especially well-suited to the incentives offered by European Union governments to spur sales and get older, less efficient vehicles off the road.

Fiat’s growth is attributed to its strong diesel program and its stable of small cars. It is this technology that Marchionne is counting on to restore Chrysler to profitability and reduce its dependence on light truck models.

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