I'd put the grill block back in. Some diesel trucks and buses have to run them just to get cabin heat in the winter. Being efficient, most diesels don't produce a lot of heat when not being worked hard. In cold weather, it's entirely possible to lose enough to the heater and through the exhaust to prevent the engine from ever warming up enough to open the t-stat.
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Call me crazy, but I actually try for mpg with this Jeep:
Typical driving: Back in Rochester for school, driving is 60 - 70% city
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