A report by USA Today has contradicted earlier rumours about the Dodge Avenger which looked to have had a very beak future.

A report by USA Today has contradicted earlier rumours about the Dodge Avenger being canceled.

A couple of weeks ago Reid Bigland, head of the Dodge brand confirmed that Chrylser was looking to consolidate their midsize car line-up which comprised of the Dodge Avenger and the Chryser 200. It meant that one model would have to be axed and the Avenger lost out due to lower sales figures. Now Chrysler and Fiat CEO Sergio Marchionne has said in an interview that the company is working on replacements for both vehicles.

Overall, keeping both models is probably a good call, due to platform sharing, the costs of producing both models is relatively low. The Chrysler 200 and Dodge Avenger posted fairly healthy 2011 sales figures of 87,033 and 64,023 and axing one model does not necessarily mean the other will pick up the slack.

In the same interview, Marchionne also confirmed replacements for the Jeep Compass and Liberty are in the works using a modified version of the Dodge Dart platform.

Furthermore, he would also like to see Chrysler launch a compact hatchback. There are no confirmations, but the model would likely be called the Chrysler 100 and the same platform would also be used to create a Lancia version as well.

Last but not least, Marchionne adamantly confirmed that Alfa Romeo will return to the US market in 2013 after several frustrating delays. They will be looking to launch with a new midsize sport sedan and wagon with around 300 horsepower under the hood.

Note: This article is a follow up from yesterday's Jeep report.

Gallery: Dodge Avenger not axed, Chrysler 100 under consideration