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Mazda 16X rotary engine two years away, will arrive in all-new model

We last reported on Mazda's next-generation rotary engine project in June of 2012 when the automaker built its last Renesis-powered RX-8, but rumors of this new engine's development had been around way before that final car left the production line in Japan, last year.
We now have enthusiastic confirmation that this next-gen rotary engine is really and truly going forward. It is still referred to as 16X and has several priorities. First is to lower fuel consumption compared to the RX-8's engine, while still making gains in terms of performance. The second is to reduce the burning of oil that was happening at the highest revs. And the third and final priority, and perhaps most key for enthusiasts, is to give the powertrain a big torque upgrade.
What we were told by a Mazda USA insider (while we are all here together at the festivities in Monterey) is that the first application of the new 16X engine will be happening in two years' time in an as yet undisclosed new model. Oh, the mind races to our eternal Mazda wish list...

Mazda still has a team working on rotary engines

The flame still burns within Mazda to stage a rotary engine revival. Before you start getting excited, it's way too soon to start saving money for the fabled, next-gen RX-7 or RX-8. Still, company boss Masamichi Kogai confirmed to Autocar that the Japanese automaker has an engineering team dedicated to improving the Wankel. This development group has the hard task of trying to make the rotary stack up to modern internal combustion engines in terms of emissions and fuel-economy standards. Neither factor were ever exactly Wankel's strong suits. Kogai described them as working "very enthusiastically" to Autocar. The boss didn't discuss any future RX-vehicles or the size of the team, however, a report from last year indicated that there were 30 engineers in partnership with universities to update the engine's design. After problems keeping up with emissions and fuel economy, Mazda built it's last rotary for an RX-8 in June 2012. Since then, there have been intermittent rumors of a return. One possible solution was a design called the 16X that was supposed to offer more torque and better fuel economy. Another possibility was a small-displacement unit as a range-extender in an electric Mazda2. Rumors of a new RX-7 have been heard for years. In 2013, Kogai clearly said that it wasn't happening. When asked again last year, he reiterated the same point.

Mazda CEO says rotary not viable, so don't look for a new one

We have some very sad news to report, rotor-heads fans: Don't expect a new rotary-powered vehicle anytime soon. This comes straight from Masamichi Kogai, the CEO of Mazda, which is the only company to ever market a commercially successful rotary-powered automobile in the world. The issue, as it has pretty much always been, is environmental.
While the Wankel rotary engine does indeed make a lot of power in a small, lightweight package, it does so while burning lots of fuel and emitting lots of noxious gases into the atmosphere, at least when running on gasoline. And that means the rotary engine will likely only ever be able to power niche vehicles. And that, in turn, means that it is very difficult to turn a profit on vehicles with rotary engines, particularly for a small automaker like Mazda.
"It has to be a viable commercial proposition. If we are going to adopt it, it has to be a product that can generate at least sales of 100,000 units a year. We have to be able to achieve a profit," said Kogai in an interview with Automotive News. Mazda sold 56,203 RX-7 models in the United States (the automaker's biggest market) in 1986. Sales of the RX-8 peaked in 2004, its first full year on the market, with just 23,690 units.