From Edmunds.com

DETROIT — While Chrysler chief Tom LaSorda is saying a small sports car is "on our wish list and in the product plan," AutoWeek reports that the Dodge Demon concept is slated to go into production. Interestingly, the now rear-wheel-drive concept will be developed on a front-wheel-drive platform from China's Chery Automobile. The change was made in part to meet toughening emissions regulations, the publication says.

As AutoWeek notes, Chery and Chrysler have embarked on a cooperative venture to produce small cars in both hatchback and sedan body styles that will be sold as Chrysler and Dodge products in the West.

Details of the Demon's production are not yet being discussed. LaSorda said the Demon would get a new direct-injection gas engine that is now being developed. He also quipped that "speeding things up" would be nice given the slow pace of negotiations in China. According to the publication, Chrysler is still working out details of the agreement with Chery and is targeting a 2009 debut for the first products from the detail.

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IMO, if they neuter the Demon as stated in the article ( 4-cyl and FWD ), it will be another compromise that will end up as a complete failure. No one in the U.S. will buy a 4-cylinder Chinese "sports" car badged as a Dodge Demon.