Great work guys.
I cant help with anything coding related but i can give you some ideas!
I dunno how IP works but maybe we could use the discarded names like High Octane? I mean they did call TM that way before production but since it was never used maybe we can? I very much doubt they had renewed the patent.
As for wether you should do an spiritual sequel, just a compilation of TM 1&2 or a new IP. I say we should do a combination.
Like make the game the same as Twisted Metal but that it has enough changes to make it so it doesnt plagiarizes the TM IP.
Like the contest is still about a bunch of cars fighting for their wish but this time either some ancient God awakes and creates the contest so he can grant wishes or a mega armament corporation with endless pockets creates a contest to grant whatever the winner asks with the catch that they use the contest winner to try their latest killing machine vehicle (Think of Killer Instinct but cars).
Then the cars are basically expies of existing TM cars. I mean since TM already uses normal cars then as long as they are diferent and dont share clear similarities then it should be fine.
For example:
TM Car/ Expy
Outlaw=Rogue
Road Kill= Highway Murderer
Spectre=Wraith
Shadow=Shade
Mr. Grimm= Mr. Reaper
Mr Slam= Mr. Bam
Darkside= Abbys
Crimson Fury= Red Rage
Sweettooth= Mad Dentist
Thumper= Tunner
Well you get the idea, if SNK got away doing Ryu clones then so you guys