Fiat Chrysler takes profit hit but raises 2016 forecast

Carmaker Fiat Chrysler raised its revenue and earnings forecast for the year despite losing 14% in profit from the year previous when it announced its second quarter results on Wednesday.

However, operating profit for the first half of 2016 was up 23% to €2.37bn from €1.92bn last year.

Shares in FCA were unsteady on Wednesday after the news, falling by 3% initially before a 2.1% rise for the day.

Chief executive of the group Sergio Marchionne vowed to get rid of the company's debt by 2018, but traders are not so sure due to product delays and ongoing political uncertainty in Brazil.

The results come swiftly after Fiat was made to change the way it reports monthly car sales in the US in the aftermath of a fraud investigation. On Tuesday evening the company said it would not register cars that have been shipped to dealers but not passed on to customers as “sales”.

Accusations were made of the manufacturer that it was manipulating sales figures through its dealerships.

In North America, Fiat's largest market by a country mile, the company posted a 2% fall in shipments to 666,000 in the second quarter, though profits rose 4 per cent to €1.4bn, partly due to good sales of SUVs and trucks.

Among those to decline was its luxury Maserati brand, which was down 17% from a year earlier.