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I second the 12v Cummins for reliability. It's capable of overkill power for the chassis and the swap is widely covered, plus parts are plentiful and it's multifuel capable. There's so many ways to repower these things it's ridiculous, there's a guy on here who has the engine behind the cab on a...

I would say do it then. It's a very straightforward chassis, I love mine. You'll hear arguments for and against every engine swap, end of the day, pick what you like and run it, we'll all love it, as long as there's pics 😉 I agree, a CAT powered A2 would be pretty cool.

M35A2s are multi fuel powered, not cat powered, that's the M35A3. Way too many variables to take a guess as to what you "should" do, such as your background with fabrication and mechanical inclination, as well as your ability to read a technical manual and follow the steps to complete the task...