The new 40-mpg compact Dodge Hornet will be based on the beautiful Alfa Romeo Giulietta model according to Left Lane News. As part of Fiat’s purchase of Chrysler the company had to make guarantees to the U.S. government that a compact car capable of netting 40-mpg would be developed and that it would be built in the United States. Fiat’s stylish 500 has been a success in the U.S. so far and Chrysler’s redesigned sedans are vast improvements over older models in terms of interior quality, particularly the eye-catching, Audi-esque interior of the 2012 Chrysler 300 C SRT. The original Dodge Hornet concept (shown above) employed a look akin to the Toyota Scion XB but the Giulietta based version (shown below) is a much different beast in terms of body styling. The Alfa Romeo-based Hornet will have a 1.4 and 1.8 litre four cylinder engine with 168-horsepower and 232-horsepower respectively. The 1.75 liter Alfa Romeo version of the Giulietta will likely be seen on SRT versions of the Hornet. Left Lane News says much of the car’s platform and styling will be ripped directly from its Alfa Romeo sibling. Road and Track has some awesome pictures of a black-clad Hornet being tested as well as some more revealing body photos. Road and Track reports that a sedan and small station wagon are in the works, as well as a Chrysler variant.