TURIN - Fiat Auto's reliance on emerging markets caused profits to tumble in the first half.
The first half operating profit slumped to L101 billion ($59.1 million), or 0.4 percent of sales, compared with a 3.0 percent margin in the same period last year.
A year ago, profits in Brazil were making up for poor earnings in Europe. But this year:
Unit sales in Brazil fell 20 percent.
Profits disappeared in Poland thanks to a price war with South Korean manufacturers who work with a devalued currency.
Sales volumes fell in Italy, and profit margins fell more.
Fiat Auto sold 1,347,000 units worldwide in the first half, much the same as a year earlier. Sales grew 2.8 percent to L26.2 trillion ($15.4 billion).