Last year, the gossip mill started churning overtime: Alfa Romeo was building a new Alfasud. Talk was that Fiat's mid-premium brand planned to introduce a small, entry-level model on a Fiat platform that could wear the erstwhile Alfasud badge. Now, Carscoop says the car is a go for 2008. And that means the Photoshop…

Since the Bologna motor show earlier this month — where students from Turin showed off an Alfa Romeo small-car concept — gossip has flown about Alfa Romeo's intention to produce a new Alfasud, a small, sports minded car to compete with the new Mini. With an iconic name Italian car nuts (of a certain age) associate…