Boring out the cylinders enables you to put larger diameter pistons in the block. Having a larger diameter cylinder means that the displacement of the engine increases. This increase can provide greater horsepower. Boring out a worn-out engine a few thousandths of an inch can square up the bore of the cylinder and breath new life into a worn out engine by restoring its compression. Good compression will have greater effect on improving the performance than the slight gain in displacement.
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