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From 1980 to 1997 I drove a VW Rabbit Diesel. It got 41 mpg in the city - and I mean stop-and-go rush hour driving, short trips with lots of idling at red lights, etc., the worst possible conditions for mileage. On the highway it got over 52 mpg.
It met all the pollution and safety requirements including the old 5 mph bumper test. Weighed 2200+ pounds, so it wasn't a lightweight. Handled well, fun to drive, simple and easy to work on. Extremely reliable too.
All with the diesel technology of 30+ years ago.
I only let it go because the rust was becoming unmanageable after all those snowy Northeast winters.
GM's awful 1970s diesel cars gave oilburners a bad name in the USA. In Europe, diesels have enormous market share and get incredible mileage, but for various reasons most of them aren't sold here.