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Chinese. You can probably get an 800cc Suzuki motor, an EFI one at that, for under $2k.
That's a motor good for 30 km/l iin a car with crappy aero and frictional losses. In a properly designed tandem with non-square wheel bearings, it should hit Elio's MPG target.
Hell... the original Chinese platform for the XAP Zebra cost just over $3k, if I recall right.
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