Despite the tough economy, the Mazda RX-7 revival is still going to happen. Sources close to Mazda tell us that we could see a new RX-7 as primeval as 2011. However, the arrival of the 2012 Mazda RX-7 of the RX-7 will almost certainly signal the end for the expensive, slow-selling Mazda RX-8.

As we reported early this year, the next RX-7 will use Mazda's new-generation Renesis 16X rotary engine which debuted at the 2007 Tokyo Auto Show in the Taiki concept. This 1,600cc, two-rotor Wankel engine has a 800cc x 2 configuration versus the 654cc x 2 configuration in the current RX-8.

The upshot of the extra displacement should be better performance, as the 16X is said to be capable of up to 350 horsepower and 215 pound-feet of torque versus the RX8's paltry 232 hp and 159 lb-ft.

Early reports suggested that Mazda would take advantage of this power potential and build a 300-hp RX-8 with styling cues from the Furai concept (shown at the 2008 Detroit Auto Show)and a mid-$30Ks price tag.

However, sources close to Mazda now suggest that the company will take a simpler approach and create a car whose character evokes the original RX-7 (sold in the U.S. from 1979-1985). Horsepower is expected to be in the 200-250 range and the pricetag will be about $25,000.

A simpler, more efficient RX-7 would likely be a better fit with current economic and legislative realities, though we hear Mazda is still trying to reduce the weight of the 16X engine while lower fuel consumption (the age-old problem with rotaries). If the company can sort it all out, the 2012 RX-7 should wage interesting competition for the Hyundai Genesis Coupe and the production version of the Toyota FT-86. – Mak Tokuyama, reporting from Japan