UPDATE 2-Fiat CEO says Q3 going well, shares rise

* Fiat CEO confirms guidance upgrade likely end-Q3

* CEO says Alfa Romeo not for sale

* Fiat shares up 2.6 pct at 9.31 euros, outperforming sector

(Adds analyst comment, background)

By Paolo Biondi

RIMINI, Italy, Aug 26 (BestGrowthStock) – Italian automaker Fiat SpA
(FIA.MI: ) said on Thursday its third quarter was proceeding well
and confirmed it could raise its 2010 outlook, sending its
shares higher.

Fiat, Europe’s fifth-biggest car maker, is looking at 2010
as a transition year to relaunch growth, Chief Executive Sergio
Marchionne said on the sidelines of a conference.

Marchionne confirmed Fiat, which has a 20 percent stake in
U.S. carmaker Chrysler, would probably raise its full-year
guidance in a couple of months.

Asked how Fiat was performing in the third quarter, he said:
“Quite well. We have seen an extremely weak European car market,
as of course was to be expected.

“You needed a period to restablish a base for growth,” he

Among markets outside Europe, overall car sales in Brazil
were up almost 11 percent in the first half of August compared
with 2009. Fiat is Brazil’s biggest automaker.

By 1432 GMT, Fiat shares were up 2.59 percent at 9.31
euros, while the STOXX Europe 600 Auto index (.SXAP: ) was up 1.19


An analyst said Marchionne’s upbeat comment on the third
quarter “is probably more interesting to us in the market rather
than repeating the thing about guidance”. [ID:nLDE66K050]

Investors are looking for 2010 results ahead of Fiat’s
guidance, said the analyst, who spoke on condition of anonymity.
The market consensus is for revenues of about 53 billion euros
($67.31 billion), ahead of Fiat’s outlook for 50 billion euros,
he said.

Marchionne, the Italian-Canadian manager who has made Fiat
one of Europe’s top industrial turnaround stories, also
confirmed the Alfa Romeo brand was not for sale.

Volkswagen AG (VOWG_p.DE: ) is eyeing the potential
acquisition of Alfa Romeo should Fiat consider putting it up for
sale, German auto industry newspaper Automobilwoche reported on

Marchionne said that Chrysler’s relations with its dealers
“has never been so good” and that the U.S. automaker needed
operating income of $800 million to turn a net profit.

However, on Monday he said it would be difficult for
Chrysler to turn a net profit for 2010. [ID:nN23142820]
(Reporting by Paolo Biondi; Writing by Stephen Jewkes and Ian
Simpson; Editing by Sharon Lindores)
($1=.7874 Euro)

UPDATE 2-Fiat CEO says Q3 going well, shares rise