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Okay,
When I saw the Smart cars in England (about 8-10 years ago), the largest was a turbo 750cc. They had 600cc and even a 500cc version -- and yes they weighed about 1600 pounds. So, these are the reasons that they don't get the higher FE that they used to.
The 700cc diesel sold in Canada gets ~70mpg (I'm pretty sure that is converted to US gallons).
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