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It was thought a less than worthy successor to the line. It was fully functional car with its 2.4 L 4-cylinder KA24DE engine from the Nissan Altima producing 200 bhp (149 kW) and 180 lb⋅ft (244 N⋅m) of torque, and not the Z-car's traditional 6-cylinder engine. In a reference to the original, it was a bright orange two-seater with swept-back styling. The concept was based primarily on a design sketch by Manny Baker of Nissan's California design studio. Nissan unveiled the 240Z concept car at the 1999 North American International Auto Show, then later at the Los Angeles Auto Expo. The 240Z Concept displayed in the same "Lemans Sunset" color seen on the 350Z The car then underwent a minor redesign and was eventually assigned the 3.5 L VQ35DE engine, hence becoming known as the 350Z. The Z Concept was unveiled in Detroit Motor Show two years later, which was similar in body shape but with a new front end. During a press conference in February 2000, president Carlos Ghosn announced plans to produce the car as he felt the new model would help to assist the company's recovery. Nissan was unhappy with the first design as they felt the original 200 bhp (149 kW 203 PS) 2.4 L KA24DE engine that was going to be assigned made the car feel underpowered, they also felt the car was considered too "retro" or too "backward" resembling a futuristic 240Z hence, a redesign was commissioned. The 240Z concept was produced for the Detroit Motor Show during the following August and September. The design, representing a modern vision of the 240Z, did not please the original 240Z designer Yoshihiko Matsuo, who compared it to the Bluebird and Leopard.
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Yutaka Katayama, regarded as the "Father of the Z" unveiled the Z concept sketch to the public when he received a motor industry award.
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The car was conceived by Nissan's North American design team in their free time, and the concept was introduced in a four state Road Show in July 1998 to various car media, dealers, and employees. market in 1996, Nissan initially tried to keep the Z name alive by re-creating the 240Z the following year.