They are rats. They are not as big as cats. They do not count as dogs. Nevertheless those are cool facts and if I ever meet a cool Chihuahua I will be sure to think of this and give it an extra treat for its ancestors.
The problem with most of them are that they have ignorant owners who think that all they are made for it being in a handbag.
And you are right and wrong :P They aren't rats, but they aren't really dogs... They haven't been able to find their true heritage but they think that they come from the only fox that live in groups. Don't remember their name atm... But they are very sure that they don't have any bloodlines from Wolfs or any other normal dog heritage.