Fiat Chrysler's SUV Shift Lifts Profits, Confidence in Targets
- Italian-American carmaker sidelined sedans to boost margins
- CEO says second Maserati model needed to reach goals for brand
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Fiat Chrysler Automobiles NV is reaping the rewards of an aggressive shift to more lucrative SUVs, with models including the Jeep Compass and Maserati Levante boosting profit despite weaker sales.
Chief Executive Officer Sergio Marchionne eliminated several passenger cars including the Chrysler 200 so that the Italian-American automaker could better tap robust industrywide demand for roomier and more rugged models. The pivot paid off in the quarter that ended last month, when adjusted earnings increased 17 percent and beat analyst estimates.