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I ve got and 83 Rabbit 4 door. put new rings in it, head gasket, bumped the timing, put a five speed in it, home made belt tensioner for the a/c, tweeked the pump and still get 50 mpg out of it.
I've had a new 1984 Jetta GL and an '86 Jetta both with NA diesels. My present 1981 Caddy originally came with a 1.6 NA, but is faaarrrrr from that now.