Stronger profits for European car-makers

European car-makers are reporting stronger profits and keeping their aspirations focused on flashier models and new markets, even as US car companies are slashing benefits and jobs amid sagging results and spiralling gas prices.

For car-makers from Italy’s Fiat SpA to German-American DaimlerChrysler AG, profits are improving and sales solid – a stark contrast to the US, where Ford Motors and General Motors have made major job cuts and are scaling back health care and pension plans.

Analysts said European automakers are performing well because they’re beginning to exploit markets in Eastern Europe such as Russia and have done better fending off competition from Asian rivals such as Toyota Motor Corp. and Honda Motor Co.

“The Europeans are already well-structured with diesel and smaller vehicles, whereas the big three had to quickly be forced to spend a little more attention on the passenger car market,” said Michael Robinet, vice president of global vehicles forecasts with CSM consultants.