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Sergio Marchionne

Fiat Chrysler raises outlook as profits jump 70%

Fiat Chrysler Automobiles on Thursday raised its revenue forecast after strong sales in North American and a recovery in the European market boosted second-quarter profits by 70 percent.

The rosy results come as the carmaker could be required to pay billions of dollars to get potentially defective Ram pickups and older Jeeps off the road under a deal with safety regulators to settle claims that the automaker mishandled nearly two dozen recalls. The offer to buy back some 500,000 vehicles is the largest such action in U.S. history.

Fiat Chrysler reported its net profit in the three months ending June 30 was 333 million euros ($364 million), compared with 197 million euros...