Report: Chrysler planning Fiat-based 40 mpg Dodge Caliber replacement for 2011

According to numerous reports, the Alfa Romeo Giulietta will serve as the foundation for a 2011 successor for the aging, lackluster Dodge Caliber. USA Today cites Sergio Marchionne, chief executive officer of Fiat and Chrysler, with throwing out the words that stirred up a slew of reports. The Detroit Free Press adds more fuel to the story by indicating that this new model, based on Fiat's C-EVO platform, will hit 40 miles per gallon and possibly even resemble the Giulietta in its final form.

Jeff Schuster, J.D. Power and Associates' director of global forecasting, points to the possibility that Dodge may not be the only brand to receive this upcoming 40-mpg model. Schuster believes that Chrysler could get a version, and, are you ready for this, the mighty Jeep brand might as well. Suppliers and consultants familiar with the project say that the vehicle will roll off the lines at Chrysler's Belvidere, IL plant late next year. Yesterday, Chrysler formally announced that it will invest $600 million to retool its Belvidere plant. Reports claim that this retooling will ready the site for production of a new generation of Fiat-based, fuel-efficient vehicles.

[Source: Detroit Free Press]