Fiat saved Chrysler. Now, Chrysler keeps Fiat alive. Fiat would be in deep trouble, would it not be for the huge profits generated at Chrysler. Fiat’s future is so cloudy that it can’t give guidance for the near future. Yesterday, Fiat reported a second quarter trading profit of 1 billion euros ($1.23 billion), “bolstered by soaring sales at its U.S. unit Chrysler,” says Reuters. Today, Fiat says it has no clue where it will stand by the end of the year.
Fiat says it can’t provide guidance “because of the international economic downturn and a slump in the European car market,” Reuters says. Fiat promised “information on products and plants” for when it will present third quarter results in October. Analysts get very grouchy when the company doesn’t tell them how the numbers will look a quarter or six months from now.
Without Chrysler, Fiat booked a 246 million euro ($302 million) loss for the second quarter. In Fiat’s home market Italy, overall car sales dropped 21.4 percent in July. Car registrations in Spain and France, where Fiat does considerable business, also caved.