The Alfa Romeo Stelvio is one of FCA's best-selling cars
The Italian-American car maker announced in its first quarter financial report that it had reduced current debt to €1.3 billion (£1.1bn) while raising its operating profit by 5% to €1.6bn (£1.4bn).
FCA produced 1.2 million cars in the first quarter of 2018 – a 5% increase on the year before. It achieved sales growth in all regions, with the new Jeep Compass and Alfa Romeo Stelvio listed as key contributors to the boost.
The company's capital spending was down by €900m in the first three months due to what it described as “programme timing”, but experts think it could hint at an upcoming boost of investment.
In the statement, FCA predicted that it could cancel its debt this summer before generating around €4bn in net cash by the end of 2018.