If you want to destroke the 7M, just use a crank from the MK2. (5M.)
Easy to get 2.8L that way, and HKS used this formula with the right parts to get some very high RPM out of the 7M. (With the right cams, turbo and other parts, it was used in the 8 second MK3 style drag car that HKS was showing off a few years back.)
According to HKS, you can go 85.5mm bore, and according to what I've found out, max stroke is about 97mm unless you want to go with some type of custom oil setup.
Reality is if you have a block bored out that thin, your likely to get some cyc. flex/ring flutter and it might cause serious wear and power problems, but it's just a guess. (And you can't rebuild the motor again w/o replacing the bores with liners.... Another idea I've kicked around. Figure about 600 to 800 to have it done, simese the bores, and then you can go max bore size up into the 85 and 86mm range, possibly more, but you'll need a custom head gasket at some point since the sealing dimple in the MHG will be exceeded at some point. And you need some material there if your going to use a copper gasket, and stainless wire for the seals.)
Again, if you need more than about 3.2L, get another motor with more displacement ability like the LS series of engines. (7.0L is not out of the question, and in a engine that is lighter than the 7MGTE.)
Notice the oil pump drive? It is machined down about as far as I would reccomend, and it barely clears the Pauter rod shoulders. (You might be able to get more if your rods have thinner shoulders, but weaker rods was not an option.
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