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My latest stickshift 240D is the peppiest of the three I've owned. So it would probably handle a swap to a 3.46 rear-end. Don't know if I would want to go as far as a 3.07. I'm running 195-70R14 Michelin X tires, and on my last 200-mile trip the odometer error was under 1% - checked against highway mile-markers (don't have GPS).
Happy Motoring, Mark
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DrDKW
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