RIMINI, Italy - Fiat S.p.A.'s chief executive said the third quarter is proceeding well and confirmed the automaker could raise its outlook for 2010 at the end of the third quarter, sending its shares higher, Reuters reported.

Fiat, Europe's fifth-biggest car maker, is looking at 2010 as a transition year to relaunch growth, CEO Sergio Marchionne said on the sidelines of a conference.

Marchionne confirmed Fiat, which has a 20 percent stake in U.S. carmaker Chrysler, would probably raise its full-year guidance in a couple of months.

Asked how Fiat was performing in the third quarter, he said: "Quite well. We have seen an extremely weak European car market, as of course was to be expected.

"You needed a period to restablish a base for growth," he said.

Among markets outside Europe, overall car sales in Brazil were up almost 11 percent in the first half of August compared with 2009. Fiat is Brazil's biggest automaker.

By 15:32 CET, Fiat shares were up 2.59 percent at 9.31 euros, while the STOXX Europe 600 Auto index was up 1.19 percent.

An analyst said Marchionne's upbeat comment on the third quarter "is probably more interesting to us in the market rather than repeating the thing about guidance."

Investors are looking for 2010 results ahead of Fiat's guidance, said the analyst, who spoke on condition of anonymity. The market consensus is for revenues of about 53 billion euros ($67.31 billion), ahead of Fiat's outlook for 50 billion euros, he said.

Marchionne also confirmed the Alfa Romeo brand is not for sale. "I said I will not sell it," he said.

Volkswagen AG is eyeing the potential acquisition of Alfa Romeo should Fiat consider putting it up for sale, Automotive News Europe's German sister publication Automobilwoche reported on Monday.