The August issue of Road & Track has a tiny blurb about the possibility of Chrysler resurrecting the Challenger using the LX platform currently dedicated to the 300/Magnum/Charger trio. A concept is reportedly currently in the works for a debut at the 2006 Detroit Auto Show. The coupe would theoretically be easy to design and build and could be, if priced correctly, the first real competition for Ford's new Mustang. R&T does point out, however, that the plant building the current crop of LX cars is at full production, so adding another model to the assembly line might be difficult.
I wasn't too sure about the copyright laws concerning the artist's rendering of the Challenger in R&T, so rather than reproduce it here and get sued I pulled a photoshop job by Doug Schramm off of Autospies instead. I actually like this rendering better than R&T's, even though it's oozing retro from every orifice.

 

Didn't really like this as it looked too much like a Cuda and not a Challenger.

 

I like it because it looks better than both... Nice car man

 

Umm, Hello Cherry, but yeah they did resurrect the Challenger. It is the hottest muscle car on the market and you can actually buy one. It is built on the LX chassis and it is the best car released in a decade. Perhaps you are referreing to rumors of a spinoff called the 'Cuda.