Yes, liquid cooled engines have been used used on airplanes since the beginning. However, engines designed for aviation applications have 'Free' counterweights on the crank so they can adjust themselves in the different constant rpm ranges to reduce harmonic vibration.....this is why slow & proggresive power changes need to be used in aircraft.....stabbing & gunning the engine up & down is a no no because the counterweights go chaotic.
Car engines have been adapted to aviation application for a long time in EAA(experimental aircraft aviation) for a long time...chevy V8, Ford V8, Jag V12, BMW V12 & the list goes on.
This is a build i watched in the 90's @ Corona airport. A 3/4 scale Curtiss P6-E Hawk with an LT-1 350 Chevy.
Toyota, Hamilton Standard & Cirrus made a car engine applicable to FAA General Aviation Requirements....in this They pretty much stand alone.
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