* Shares rise 4.4 percent, outperform higher car sector (Recasts lead, adds details, shares)

By Danilo Masoni and Stefano Rebaudo

PARIS, Sept 30 (Reuters) - Italy's Fiat will close 2010 witha net profit, beating its break-even target, CEO SergioMarchionne said, as the carmaker sees a brighter future afterthe industry crisis and prepares for possible tie-ups.

Even though sales in September did not go well in its homeItalian market and in Europe, Fiat would very likely raise its2010 targets, Marchionne said at the Paris Auto Show onThursday.

"I've looked at the numbers and I think there is a very goodchance we will (raise) targets," he told reporters. Askedwhether Fiat will report a full-year net profit, Marchionne siad"yes".

"This is the first auto show that looks beyond the crisis.Carmakers' attitude has changed. We see a sligthly rosier futurebut it's too early to open champagne bottles," he said.

Shares in Fiat pushed higher after the comments. At 1353 GMTthe stock was up 4.4 percent at 11.45 euros while the STOXXEurope 600 Autos index rose 1.9 percent.

Traders cited a positive situation for the group despitedifficulties for the sector, as well as speculation aboutpossible sector alliances after a spin-off of the auto andindustrial businesses due to be completed this year.

Marchionne said Fiat's car sales in September "weren't verygood in Italy and Europe but went well in Latin America".


Marchionne said the group would look at a possible tie-upwith a third car player only after completing integration withU.S.-based Chrysler, of which Fiat has management control.

"We have a very challenging target which is the integrationof Fiat and Chrysler. Let's bring that at home and then we'lllook elsewhere," he said.

Fiat owns 20 percent of Chrysler and has options to raiseits stake to 35 percent and then 51 percent.

The Italian group is splitting its autos and industrialbusinesses into two separate listed companies a move aimed attransforming the company into a global car player.

The break-up, effective in January, is seen as opening theway to an eventual merger between Fiat and Chrysler. The planwas approved by Fiat shareholders in September.

Marchionne also said the group was open to alliances tostrengthen its Fiat Industrial unit, which controls Italiantruckmaker Iveco and New York-listed agricultural machinerycompany CNH.

"We're open to any alliance that strengthens the business,"he told reporters when asked about the possibility of a merger.

A report in the Italian press said in September Germany'sDaimler was interested in its industrial arm..

Daimler CEO Dieter Zetsche said his company was not in talkswith Fiat on the subject.

A sale of Fiat's Alfa Romeo brand -- on which Volkswagen's chairman has set his sights -- is not on the cards, Marchionnesaid, adding a bourse listing for the group's Ferrari unit wasan option but there were no plans for this now.

He also said Fiat's stake in RCS MediaGroup, which publishesItaly's biggest selling daily, was "essential". (Editing by Michael Shields)