Come early next year Chrysler plans on unveiling a completely redesigned midsize car to replace its present cars in that niche, the Chrysler 200 and Dodge Avenger. The new model is sorely needed if Chrysler wishes to be competitive in the most popular part of the US car market.

Company executives announced on Tuesday that the cars will be built in the same factory where the Avenger and 200 are built now, in Sterling Heights, Michigan, just north of Detroit.

The two models were first launched in 2006, with one update three years ago. Today they have the distinction of being the oldest cars in the midsize market. They are priced far below just about all their competitors, but they are also noisier, have less pleasant rides and worst of all, have poorer gas mileage than the more recently released competition, such as the Toyota Camry and Honda Accord.

The midsize auto market is a fiercely competitive niche, responsible for the largest percentage of car sales in the country and Chrysler’s choices are not doing well.

Sales for the Avenger and the 200 reached 136,000 as of June, which is higher than last year’s sales, but still not enough to make the cut. Compare that figure to Toyota’s sale of close to 208,000 Camry’s, and Honda’s sale of 187,000 Accords, and you can see why Chrysler feels a need to change.

The new model will most certainly be built utilizing component parts designed together with the Italian car maker Fiat SpA, the majority owner of Chrysler.