Maybe it would be interesting to replace the rusty panels with some fiberglass, both due to its lighter weight but also to eliminate rust issues.
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Originally Posted by ecomodded
Could buy a Sprint or firefly and use its drivetrain
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With a turbocharger and an intercooler it would be great. It may even not feel so underpowered without them, but a well-tuned setup would allow it to be kept at lower RPM while cruising. Nowadays even the turbo-lag issue is easier to overcome
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Or a tdi and join the diesel crowds mpg savings
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Or if you would go with a TDI there is also the opportunity to convert it to also run on vegetable oils.