Fiat Chrysler raises outlook as Q2 profit jumps 70 percent

Fiat Chrysler Automobiles NV raised its full-year earnings forecast after second-quarter profit jumped 58 percent because of growth in Jeep sport utility vehicle sales that helped North American profit more than double.

Ferrari, which filed for an initial public offering with the New York Stock Exchange on July 23, earned $1.53 billion (1.387 billion euros) in the second quarter, up $42 million over Q2 ’14, while Maserati revenue slid by $280.6 million to $1.257 billion (1.133 billion euros).

As a part of the record-breaking fine structure the company must pay to the National Highway Traffic Safety Administration (NHTSA), FCA apportioned $20 million to incentivize owners of certain recalled vehicles to either fix or trade in their trucks and SUVs.

Fiat Chrysler says 57,000 2009-2011 Ram 1500 and Dakota pickups and 2009 Aspen and Durango SUVs are eligible, as are 94,000 2008-2012 heavy duty Ram pickups and 24,000 2008-2012 Ram Chassis Cab trucks.

During a conference call on Thursday, Marchionne said the Italian-American company complies with U.S. notification requirements more than 98% of the time. Globally, FCA made $364 million. Another $15 million would be assessed if the company violates the agreement. But Marchionne added that it is “not an excuse”, and the automaker “must and will do better on this”.

Marchionne said the company will pay the $70 million shortly, and said the buyback costs can be included in the $20 million.

“What we have not wavered on is the development of both powertrains and basic (vehicle) architectures”.

Marchionne also said he did not think contract talks with the United Auto Workers in the U.S. would go past the September 14 expiration date of the current deal nad said talks have been constructive so far. Ford’s margin is 11.1% and GM’s is 10.5%. European volumes were up 12 percent, boosting revenues 19 percent. Asian sales slipped 15 per cent on increased competition in China, although revenues were flat. Marchionne also has been vocal about the need for consolidation in the industry, but hasn’t yet found a partner.

The company’s total revenues in the quarter grew 25 percent to €29.2 billion, or about $32 billion.