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The main reason you loose power without the battery pack is that the fly wheel on the stock insight engine is also the fly wheel, so without a good battery pack you are more or less running the engine without the flywheel, the computer it seems would still pull energy out of the engine to slow it down on the power stroke but it's not going to be putting much back in on the compression stroke.
The engine spacing is not the same as a civic either from what I understand, it is however apparently the same as the Honda Fit and you can get a JDM Fit with either a 1.2 or maybe it's a 1.3L vtec engine, not sure on the lean burn tho.
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