That would be one for the record books. What on earth - was done to it? All the 350 (5.7) and 379 (6.2) diesels use the same basic Ricardo Swirl chambers, Stanadyne D-series pumps, etc. Over the years, many changes were made to make the engines more rugged - but nothing was done that improved overall efficiency - regardless if a D, DX, N, etc. The V5, V6, and V8 Olds diesels used the same Comet swirl-chamber technology as the later 6.2s-6.5s, the Ford-IH 6.9s-7.3 IDIs, etc. The best fuel mileage I ever witnessed a 350 diesel powered truck was 23 MPG with 2WD, overdrive and 3.08 axle ratio. We had a virtual fleet of them were I worked years back, an most averaged around 19 MPG on highway trips. My boss bought three new diesel trucks in a row - and he kept hoping to get a good one (never happened).
My best 6.2 - in an 82 K10 4WD truck with 3.08 axles, and a four-speed manual trans with overdrive has gotten 24 MPG on a few rare long trips - and it barely has enough power to propel itself in OD. I suspect if it was a 350 instead - it would get worse mileage since it would be lugging even more.
You mention a full-size 4WD truck with a 5.7 liter Olds diesel getting 38 MPG. Funny - my little Isuzu mini-truck - 1985 PUP 4WD with a 2.2 liter diesel can barely get 32 MPG with a wind behind it. My neighbor has a Chevy S10 2WD with a brand new, turbo 3.3 liter DI Cummins and he has gotten 36 MPG on a few trips.
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