Making an upgraded version of this...
Or this...
And have it road-legal in most jurisdiction may not be so hard at all, because of the safety requirements not being as stricter as for a car.
As far as emissions go, I'm sure this could be addressed even for ancient projects such as a VW Beetle, but it would be too expensive to even try improving structural rigidity and adding some modern safety features to sell only a handful. Yet nowadays most of the so-called compact cars are noticeably wider and longer than a Beetle. I notice it when I see some houses with garages which might've been built when the Beetle was the best-seller here...
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