not necessarily smaller rims.......but smaller diameter tires
it's all about the final diameter of the TIRE.
on 18 inch rims stock was 245/45/18.
I went with a taller tire on the stock rim 245/55/18 and got a 6% larger diameter tire that still fit. It lowered my rpms on the road and helped me get 32+mpg in an 02 Infiniti Q45!
never did anything to the engine....
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