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According to a report from Autocar , Honda is rumored to be working on a CR-Z that ditches its conventional hybrid powertrain in favor of a small-displacement, turbocharged mill. The proposed new engine is an all-new 1.6-liter unit that will produce around 160 horsepower. Autocar states that a higher-output CR-Z Type R may follow shortly thereafter, rumored to produce around 200 hp. This new powerplant is reportedly slated for use in the Honda Jazz (Fit), Civic and Accord, and could provide the basis for the next-generation Civic Si engine. Like many European B and C segment cars, the next Fit and Civic are also moving to smaller displacement, forced induction powertrains to offset increasing emission standards. Sales of the hybrid CR-Z have started to fade in Honda's home market, despite the hatch being named the Japanese Car of the Year. Honda hopes that a turbocharged CR-Z would broaden the vehicle's appeal in other key markets, as well, such as the United States and Europe. The 1.6 liter Turbo powered CR-Z will ensure that Honda have an answer to the Scirroco and the upcoming Hyundai Veloster.