Yup. You better believe it. Gizmag has the gen here, and drops hints about four other turbo-diesel motorcycles in development. See another viewpoint here. It's designed and built in Holland, uses a modified 1200cc VW 3-cylinder turbodiesel engine, weighs 445lb, and reportedly makes up to 120BHP and 200lb.ft of torque ... and gets 150mpg. That's about 700 miles between fuel stops on a 5-gallon tank, or two weeks of your daily commute between fill-ups.
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Inflated numbers? Unacceptable emissions? Wacky power curve?
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For example:
My 750cc VFR with 100hp/55ft-lb at the wheel gives 40mpg in mixed riding.
A late model Honda civic with a 1.7L inline-4 makes 115hp/100ft-lb at the crank and gives about 35mpg in mixed driving.
So, I'd think that a 1.2L bike motor that gives 120hp/200ft-lb with 150mpg could deliver something close in a car.
Something is hinky.
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This is interesting reading:
http://www.grinningplanet.com/2005/04-12/diesel-vs-gasoline-article.htm