STOCKS NEWS EUROPE-Fiat-Chrysler rises on Alfa rumours, green incentives

Shares in Fiat Chrysler Automobiles rise 3.1 percent on a media report that the carmaker may be planning to make Alfa Romeo a standalone company as part of its latest plan to revive the struggling sports car brand.

Fiat Chrysler, which on May 6 will unveil a five-year industrial plan for the group, including investments and new models, declines to comment.

According to Automotive News, Alfa Romeo will have a separate, publicly disclosed profit and loss statement as is already the case with Fiat Chrysler's luxury brands Ferrari and Maserati.

"This is good news," brokerage ICBPI says in a note. "(The move) would make improvements brought about as part of the re-launch plan more visible."

Fiat (Berlin: FIAT.BE - news) has repeatedly tried to revive the brand but failed because of insufficient investments, adequate models and quality issues. However, Chief Executive Sergio Marchionne has put a re-launch of the 104-year-old marque at the centre of his strategy to return to profit in Europe by 2016.

Another broker adds that the move "would also make Alfa Romeo more easily valuable and might be seen as a step towards selling part of it".

Media reports of possible new incentives for green cars of up to 5,000 euros ($6,900) per vehicle, is also boosting the stock, various brokers add.

At 0800 GMT, shares are up 3.29 percent at 8.795 euros, outperforming a 2.3 percent rise in Italy's automobiles and parts index.

Reuters messaging rm://agnieszka.flak.thomsonreuters.com@reuters.net ($1 = 0.7223 Euros)