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Not every engine contract is do-able in the game depending on your design skill and technologies you've unlocked. Also there are some core technologies missing in the vanilla game, such as multi-row radials or oil burners, that would make these types of contracts easier to win. In many cases, you're going to have to pass on contracts that you can't supply.
The length requirement is maximum length, and not minimum.
As Caaron14 mentions, your best bet for old aircraft engines are going to be Radials or Rotories. These will minimize weight and size, which will allow you to create larger displacement engines.
There is no replacement for displacement, as the old saying goes. You need to create larger engines by using more cylinders or greater bore and stroke ratios.
See this recent thread about how to increase your design skills: https://steamcommunity.com/app/285110/discussions/0/2643000642398783105/
In short though, you build better designs, that you use in vehicles, fund research teams, and fund racing series. Those three increase your design skills. Sub-component skill requirements also decrease over time.
By 1922, you should have access to 9 cylinder radials and up to 12 cylinder double banked engines. 16 is also a possibility, although a stretch.
Check out Radials and Rotories as Caaron14 mentions. Other things to look at are turbos and keeping displacement down, but cylinder count up.
This is probably because you're increasing the various performance metrics so high that it robs fuel economy. Using more cylinders would get you the performance you need, which will allow you to improve fuel economy.
Military Contracts are not lucrative unless there is a war OR you can reuse the components for multiple contracts. The later is the main way to turn a profit on them.
Summation, try to unlock some additional technologies. Increase cylinder count to help the power/fuel economy issues. Weight will always be a problem with aircraft designs. You will not always be able to design early year contracts, so don't sweat it if you can't.
Have you considered being a B2B supplier and outsourcing or licensing your designs to other manufacturers in the game? That might fill a little more of what you're looking for.
Contracts have be balanced in a way that they don't break the core game. As for adding a bigger variety, sadly, there is a limitation to the amount of work I can continue to put into the game, so what you see is what we get for now.
I would love to add more vehicle types to the game, including types specifically for the contracting system. Sadly however, it costs several thousand dollars worth of artwork for each type added to the game, and the game doesn't make anywhere near enough to justify the expense. After release, I hope to start a "Feature Bounty" system, in which players will contribute money, and in exchange they will vote for new vehicle types or systems to be added to the game. Many of these vehicle types include contract specific types. You can find much more information by doing a search for "Feature Bounty" or "Expansion" here on the forums. Unfortunately, due tot he nature of crowd funding, and the fact that contributors will vote on what I work on, I can't guarantee anything will be made.
I can also add, all of these systems are moddable, you can add contracts for anything want to the game, adjust the payout values for the contracts, etc. I believe there is one mod in the workshop that includes tanks for example. Although there is not artwork for them.