By Paul Rachwal
Monday, Jun 16th, 2008 @ 10:13 am

Update: It appears Nissan has won the contract to produce Chrysler ’s Dodge Hornet compact car, dispelling recent rumors about Chinese production. The news follows a story last week about the ongoing status of the Hornet project. The compact Dodge hatchback will be built on the Versa platform, according to a new report.

Chrysler and Nissan have not yet officially announced the cooperation, but well-placed sources have told Automotive News the partnership is a done deal. It is expected other collaborations might also come from the two companies in the future.

Original Story: The Hornet concept car unveiled at the 2006 Geneva auto show is being developed into a global small car by the automaker, today’s reports say. It’s just one more sign of the changing times, with gasoline prices at record-high levels and customers flocking to small, fuel-efficient cars instead of gas-guzzling trucks and SUVs.

“We are working intensely on the Hornet study,” Chrysler vice president for international purchasing Thomas Hausch told the Financial Times Deutschland. “I think we will announce something on this in the future.”

It is not yet decided if the yet-unnamed model will be sold under the Dodge or Chrysler brand, but a launch in Europe, the U.S. and other markets is likely to happen sometime in 2010. If the project indeed becomes reality, it will take the 2.0-liter Sebring’s place as the automaker’s smallest model sold overseas.

Leftlane’s last reports regarding the Hornet had China’s Chery building it for Chrysler. The concept car was powered by a supercharged 1.6-liter inline four borrowed from the Mini Cooper S, and was basically a rebodied Cooper, although Chrysler claimed it was built on the Jeep Compass platform. The concept also featured rear doors that open suicide-style, like Mazda ’s RX-8.

Previously, Leftlane reported Chrysler is looking for a partnership with another automaker, likely to involve building the small car at their factory and using an existing platform, with both VW and Chery rumored to be in talks with Chrysler for such a team-up.

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