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cool project. It won't be a 40 mpg vehicle but it has the potential to get better fuel economy than the truck the diesel came with if the rear end gear is chosen for economy (I'd recommend a 308 to 330 or so rear end).
I am building a 39 Studebaker Coupe Express pickup now and plan a 671 mercedes turbodiesel with a ford f150 five speed manual transmission. I will use if for casual use and some light towing. I'll be hoping for around 23 to 25 mph highway with it.
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