2006 Dodge Hornet concept – Click above for high-res image gallery

Chrysler has announced that it is working on a small car for the Dodge lineup capable of achieving fuel economy of 40 miles per gallon. This new model will be based on Fiat architecture and is expected to debut near the end of 2011. No word has been given as to whether or not the new Dodge will rival B-segment offerings like the Ford Fiesta or C-segment vehicles like the newly introduced Hyundai Elantra. Longtime Autoblog readers will no doubt recall that a high-mpg small Chrysler has been on the table seemingly for ages, since before the well-received Dodge Hornet concept car of 2006, a vehicle that was said to have been greenlit for production a handful of times, albeit to no apparent result.

Aside from the North American-spec Fiat 500 that debuts at this week's Los Angeles Auto Show, the new Chrysler/Fiat partnership has yet to produce any real fruit. In the meantime, the automaker has been heavily reworking its product portfolio, offering new powertrains and better refinement for the full slate of Chrysler, Dodge and Jeep products.

[Source: Automotive News – sub. req.]

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