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Plenty of lower power B-series engines that'll bolt to the stock trans. 1.3 and 1.6 SOHC versions are plentiful. If you want you can even try to find the 1.1L version to import. Those weren't sold here.
I think gearing and aero are bigger issues though.
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'05 Outback XT, 19 mpg
BP-turbo 93 Festiva (long gone)
1/4 mile - 12.50@111.5
Best MPG - 36.8
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