Surprise as Fiat Chrysler net profit falls by forty percent

The figure was way below the €539 million profit expected by analysts.

But sales, including those of luxury sports car unit Ferrari, raced ahead by 18 percent to €113.2 billion.

The group, which spun off Ferrari on January 4th, expects sales to rise this year from the €110 billion it booked in 2015 excluding Ferrari.

It said it expects operating eaings (adjusted eaings before interest and tax) to rise above €5 billion in 2016 from the €4.79 billion registered in 2015.

Adjusted net profit is seen as rising to €1.9 billion from €1.7 billion in 2015.

FCA shares fell 1.8 percent on the Milan stock exchange, which was down 1.2 percent in midday trading.