Take any motor today that would fit in the Elio. Now turn it into a 12 in. ruler. Take the 6 in. out of the middle and that's all the motor required to run an Elio. The rest would waste. When a car company designs a new motor, it is normally designed to cover the requirements of several car's in it's inventory and the conditions under which those car's would operate. At least half, if not more of this motor would be an add cost and weight. JMO
EM's motor is designed to get the Elio to 100 mph and 60 in under 10 sec. Nothing more, nothing less.
Actually the Mercedes Benz SmartForTwo diesel in Canada uses an 800cc, 3 cylinder, direct-injected turbodiesel putting out 54bhp. It is perfect for the Elio.
Except for cost. It would probably raise the price of the Elio to $8000.