Autoblog and Yahoo may earn commission from links in this article.Toyota's long-awaited MR2 revival appears to be gathering momentum, and the reborn sports car could be different from the machine enthusiasts remember. While the Japanese automaker has yet to reveal a production version, development suggests the new MR2 will feature a mid-engined, all-wheel-drive layout powered by a turbocharged four-cylinder engine. The fourth-generation MR2 would strengthen Toyota's growing performance lineup alongside the GR86, GR Corolla, GR Yaris, and the next-generation Supra, while the GR GT will serve as the brand's flagship sports car.The GR Yaris Paves The WayToyotaToyota is using a modified GR Yaris prototype known as the Concept M to help develop the new MR2. Unlike the standard hot hatch, the Concept M relocates its engine behind the seats and has been competing in Japan's demanding Super Taikyu endurance championship. The program gives engineers valuable real-world data by testing new components under extreme conditions. Chairman Akio Toyoda has long supported this approach, previously stating, "If we decided to make such a car in a meeting, it would never exist." The project also aligns with Toyota's broader strategy under Toyoda's leadership. Rather than focusing solely on EVs, the company continues to pursue a multi-pathway approach that includes hybrids, combustion engines, and electric vehicles.A New Engine And A Different FormulaToyotaPower is expected to come from Toyota's new turbocharged 2.0-litre four-cylinder engine, internally known as the G20E, which many are referring to as the "Baby 2JZ." Early reports suggest the engine could produce more than 600 hp, with 400 hp being more likely for a road-going application, making it significantly more potent than previous MR2 generations and GR's current 1.6-liter turbocharged three-cylinder. The most surprising detail is Toyota's decision to pair a mid-engine layout with all-wheel drive. Not many mainstream sports cars have utilized this setup, as it's most commonly found among supercars like the Lamborghini Revuelto. According to Gazoo Racing engineering boss Naohiko Saito, early testing showed the configuration delivered the best results for high-performance driving. The new setup could also help eliminate some of the handling "quirks" that characterised earlier generations of the MR2.Taking Cues From The FT-Se ConceptToyotaToyota has yet to reveal a production prototype, but many expect the new MR2 to take inspiration from the FT-Se concept unveiled in 2023. Its low-slung stance and two-seat layout would be the perfect platform to wear the MR2 badge. Recent trademark filings for the GR MR2 name have only added fuel to the speculation. Combined with Gazoo Racing's transition into a standalone brand and word of a Celica revival, the signs increasingly suggest Toyota's iconic mid-engined sports car will make its long-awaited return.AdvertisementAdvertisementThis story was originally published by Autoblog on Jun 12, 2026, where it first appeared in the News section. Add Autoblog as a Preferred Source by clicking here.