Strong sales by its U.S. subsidiary, Chrysler, came to the rescue of Italian carmaker Fiat on Tuesday as it reported a quadrupling in second-quarter net income.
Fiat, which is based in the northern city of Turin, said net profit for the three months ending June 30 was $188 million, up from a restated profit of 32 million euros in the same period last year. Without Chrysler, in which Fiat holds a majority stake, the Italian company would have lost 247 million euros, as European sales dropped 5 percent.
In the United States, Chrysler Group's sales picked up in the quarter on strong demand for trucks and SUVs, hitting 643,000 vehicles with growth outpacing the industry average. Still, Chrysler cut its full-year sales and profit targets after a slower than expected start to the year.
Chrysler said it now expects to ship 2.6 million vehicles worldwide in 2013, at the low end of its target of between 2.6 million and 2.7 million. It expects to earn between $1.7 billion and $2.2 billion, down from its previous target of around $2.2 billion.