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Do you suppose it would be possible to squeeze a V10 TDI into a VW Type 1. Of course, this is only a hypothetical question, but can you imagine? 500 ft/lb's in an 1800 lb car + engine wieght! That is what I call a car!
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That's what I call an accident waiting to happen. That Type I engine is hanging off the back of the transaxle. Put that diesel engine hanging that far off the back end of the car and between the cantilevered weight and the monstrous torque, you'll pop a wheelie in every gear. That is, if you could actually make a transaxle handle that could handle the power. Or if you're thinking of doing a front-engine, rear-drive major re-engineering, that thing would have a front end so heavy that it wouldn't be fun to drive. It'd plow into every corner. Having very little weight in the rear would make for no traction, too, although you could easily burn rubber in any gear. Too easily. Traction would be your limiting factor on acceleration.
I think a Type II MicroBus with a mid-engine set up like a sand rail would be better. In the original configuration those Type II's could barely get out of their own way. Imagine the scoot of a V10 diesel being able to haul a boat over mountain passes and not slow down...