New Alfa Romeo-Derived / U.S. Made Dodge Compact Sedan to Debut at 2012 Detroit Show

A new U.S. market compact sedan to be developed by Fiat and built by Chrysler is set to make its debut appearance at the 2012 North American International Auto Show in Detroit in the beginning of next year, according to a report from the Wall Street Journal.

The as-of-yet unnamed model will be badged as Dodge and powered by a Fiat-derived 1.4-liter turbocharged gasoline engine. It’ll also do 40 mpg combined, or at least it will if Fiat wants to net itself a further 5% of Chrysler from Mr. MonopolyUncle Sam.

The Italian automaker wants to expand its 46% share in Chrysler & Friends by an additional 7.5% courtesy of the U.S. Treasury and Canadian government on top of the 5% it’s expected to get by pushing the 40 mpg envelope.

The new model will be built in Chrysler’s Belvidere plant in Illinois, which the brand is currently spending US$600 million retooling for the job. Production is expected to start later this year. Dealers, such as David Kelleher of David Dodge Chrysler Jeep of Glen Mills, PA are naturally very excited:

“We have never had a viable compact car. This will allow us to reach the entry level customer and it's a perfect fit for Dodge which has been faced with challenges.” [Like having to share a lot with the Chrysler Sebring, for one…]

The Caliber, the closest thing Dodge currently has to a Honda Civic / Ford Focus / Chevy Cruze competitor at present, does a paltry 24 mpg in automatic guise.

The new model will share the same basic floorplan as the Alfa Romeo Giulietta hatchback, which will also be used to underpin five new models over the next three years.

There’s no word yet on a name, but I’m willing to discount Aires, Neon and Stratus as possible contenders.

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