Strong sales boost Fiat Chrysler outlook

Fiat Chrysler Automobiles raised its outlook Thursday after strong North American sales and a European recovery drove second-quarter earnings up 70 percent despite hefty U.S. recall costs.

The rosy results come after the carmaker reached agreement with safety regulators to pay millions of dollars in penalties for delays in nearly two dozen recalls. Fiat Chrysler also agreed to take potentially defective Ram pickups and older Jeeps off the road under the deal.

CEO Sergio Marchionne downplayed the overall cost of the actions, saying that the pickup buyback wouldn’t cost more than $20 million.

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