RUMOR DEPT - "Lo and behold, Dodge is nearing the finalization of its plans to build the Dodge Hornet. According to industry sources including Edmunds, the Hornet will be based on the VW Polo, a subcompact car built by Volkswagen and popular in the European market. This deal is amazing as Volkswagen and Mercedes [Chrysler LLC,- Dodge Division] compete fiercely, especially in Europe. VW has a plant in Mexico that likely will produce the Hornet as the company has excess capacity and the cost advantage that no American manufacturing plant can offer. For its part, VW gets to sell rebadged versions of the Dodge Caravan minivan.
If based on the Polo, the Hornet is expected to use the Polos 1.6L engine and be paired with a VW transmission. Beyond that, look for the vehicle to be closer in appearance to the Scion xA design, sport a five door hatchback design, and seat five passengers. Currently, the xA sells for just over $13,000, so expect the Dodge to compete at or below the Scion price..." Mikey