NEW YORK (CNNMoney.com) -- The Chrysler division of DaimlerChrysler AG is expected to announce on Saturday production plans for a new Dodge Challenger coupe styled and named after the automaker's classic muscle car, newspapers reported.

The V8-powered Challenger will go on sale in 2007, but Chrysler will promote the car this summer to try to pull customers into showrooms, The Wall Street Journal and Detroit News reported, citing people familiar with the company's plans.

Dodge Challenger concept

Chrysler's announcement of the new Challenger tomorrow at a Nascar race in Daytona Beach, Florida, was moved forward by several months in hopes it will create some buzz for the automaker, the newspapers' sources said.

The two-door Challenger, based closely on the 1970 model of the muscle car, will boast a 425-horsepower V-8 engine. Chrysler plans to build the car on the vehicle platform used for its Chrysler 300 and Dodge Charger.

The Challenger's faithful redesign comes after Chrysler was assailed by critics for bringing back the 1960s muscle car name "Charger" on a four door sedan.

Industry watchers expect the Challenger to be priced to compete with the Ford Mustang which runs from $19,000 to $26,000, depending on the engine and other options.

The news comes as the Big Three automakers harken back to the golden age of muscle cars. The reborn Mustang has been a hit for Ford since its 2005 redesign. Struggling General Motors is expecting to relaunch the Chevrolet Camaro within the next few years. A concept version of that car was also introduced at the 2006 Detroit Auto Show, the same show at which the Challenger concept was unveiled.

"The historical significance of the Challenger takes it back to the days when the Big Three dominated the highways," said Erich Merkle, an analyst with IRN Inc. of Grand Rapids told Detroit News. "The design represents a place were the Japanese can't follow."

Reuters contributed to this report.

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