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"Chrysler abandoned research on flywheels do to safety and liability issues..."
Really? Or was that just an excuse? After all, they (like the rest of the not-so-big any more 3) sure managed to find reasons to give up on every efficiency-increasing device that came along, from electric cars & Stirling engines on down to just simply making smaller cars.
If you do some searching on high-speed flywheels, you'll find there's quite a bit of ongoing research, with systems having been installed in (or planned for) in busses and trains.
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