The European car market is recovering and moving into what Fiat Chrysler chief Sergio Marchionne believes will be permanent, although not phenomenal, growth.

However, he does not see the Fiat brand returning to being a full range manufacturer like Europe’s other mass producers.

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He added: “Fiat will not grow in composition  to what it was before. We have taken actions in Europe to improve profitability and we will not invest in unprofitable ventures in the future.

“But the market dynamic in Europe has changed, particularly with the growth of compact SUVs which has allowed us opportunities to launch vehicles like the Fist 500X and the Jeep Renegade.”

There are still economic and geo political issues to be overcome, however. Some markets are slower to grow that others while the situation in Ukraine needs to be resolved, added Marchionne.

“If it is not resolved there is a danger that the situation could spill over in economic terms into the rest of Europe. In the Russian market generally our brands only have limited exposure.”

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While volumes might not return to previous levels, profitability will be improved with new entries from Jeep, such as the Renegade, and the relaunch of Alfa Romeo as a higher end sporty brand. The first new Alfa is due for launch on 24 June.

Also in the pipeline is a new roadster for Fiat, which Marchionne revealed, will be called the 124  Spider. This has been developed with Mazda along with its new MX-5. Alfa Romeo will also add a roadster in the future, he added.

He also said that the cooperation with Mazda will be continuing.

“There is the possibility that we can do more together but there is nothing specific we are talking out now.”

He also welcomed the possible of Google and Apple entering the vehicle market.

“I think the industry needs something or someone to come in a disrupt the market a little. Am I concerned? I’m always concerned but we would certainly be interested in collaborating with them.”