Fiat in Black; Marchionne Wary of European Market

Fiat CEO Sergio Marchionne expresses concern about the vibrancy of Europe’s new-vehicle market as the auto maker reports a second-quarter trading profit of €525 million ($762 million), a 71% jump from like-2010’s €307 million ($446 million).

Alfa Romeo sales up 30%.

“It’s absolutely clear the European market is not in good shape,” Marchionne tells journalists and industry analysts in a conference call from Brazil.

Through June, auto makers in Germany, France, Austria, Sweden, Finland and the Czech Republic all recorded gains. But deliveries were down in the U.K., Spain and Fiat’s home market of Italy.

Bucking the trend was the Giulietta, from Fiat’s Alfa Romeo brand. Demand for the compact car drove Alfa sales up 30% in Europe, Fiat says.

The Giulietta, which is based on a platform that will be modified for Fiat’s alliance-partner Chrysler, contributed to the €187 million ($271 million) trading profit generated by the auto maker’s automotive operations.

Fiat’s Ferrari and Maserati brands posted trading profits of €82 million ($119 million) and €9 million ($13 million), respectively, increases of €5 million ($7.3 million) and €8 million ($11.6 million), compared with like-2010.

Marchionne says Maserati’s products are suffering from age, but forecasts a rebound with the arrival of new designs and technology in 2012.

Maserati North America today announces pricing on its two newest cars, the ’12 GranTurismo MC and the ’12 GranTurismo Convertible Sport. They will start at $139,000 and $142,800, respectively.

Fiat upgrades its guidance for full-year 2011, expecting a trading profit in the range of €2.1 billion ($3 billion) on revenues in excess of €37 billion ($54 billion).

Fiat defines trading profit as income before restructuring, net financial expenses, income taxes, minority interests and equity in income or losses of unconsolidated subsidiaries and affiliates.

[email protected]