The upcoming Toyota and Subaru RWD coupe, dubbed the 086A Project, is said to have been hit by a power downgrade to improve fuel efficiency. The performance sports car that I raved and speculated about all along is slowly being watered down into nothing more than a dreaded hippy mobile.

7Tune reports that the 086A will now derive power from a less powerful 2.0-litre boxer engine. We’ll no longer be getting a 200-HP two-door pocket rocket. Instead we’ll probably see just 160-HP. It’s a shame. Fortunately, the 086A is said to be losing some weight to counter the decreased power and balance the power to weight ratio. There’s no way it’ll make up for the 40 less horsepower but atleast it’s something.

Toyota and Subaru have also revised the 086A target demographic to 30 – 50 year olds from the originally targeted group of “young individuals”. However, this change seems to nothing more than a marketing ploy designed to evoke nostalgia amongst enthusiastst that grew up around the original AE86. Seeing how the target price of $25,000 USD hasn’t changed, the Toyobaru could very well outsell the Nissan Z and Mazda RX.

The 086A is set to take center stage at Toyota’s stand at the Tokyo Motor Show in October and will likely debut at dealerships at the end of 2010.

Note: The render is an artist’s speculation. The final production will almost definately look nothing like it.