Now, I know for a fact that the engine on my 1963 VW Bug was hung from the trans-axle. Being a teenage, shade-tree mechanic, I swapped out the engine on my bug, with an engine in better condition from a bug that gave up the ghost when its front end was wrecked.
Very simple matter, unbolt the throttle cable, remove the fuel line, generator and, coil wires, remove the rubber boots that connected the heat exchanger on the exhaust system to the heater ducts, and remove the four bolts holding the engine to the bell housing.
Now, slide an old ladder under the back bumper until it is just under the engine, put some bricks under the ladder just behind the back bumper, and then place some more bricks on the ladder at the far end. This then raises the ladder so it just touches the bottom of the engine.
Now grab the exhaust manifold and pull. The engine easily slides off the two lugs that held it in place and aligned with the input shaft on the trans-axle.
The engine lands on the ladder and “gently” settles onto the ground.
Now, grab yourself some more bricks, open the two doors, grab one door and lift, with the leverage, you lift the VW a few inches, put a brick under that side just in front of the rear tire, and do the other side. If there are only two of you doing it, it will take a couple attempts to get the rear end up high enough to slide the engine out. I had several friends and it only took one try on each side.
You then just slide the engine out on the ladder.
We then slid the “new” engine onto the ladder, slid it under the car, lowered the car back onto the ground, used the ladder to pry the engine back up high enough to slide it onto the input shaft and transaxle lugs.
We jokingly referred to this as a “Two Six-Pack” swap out, but actually, it only took like an hour total. We still had several beers left to celebrate the new engine starting up when we were finished.
So there, the VW engine is a “hanger,” put that in your “exhaust” pipe and smoke it…
PS: the heat exchanger on my bug also leaked exhaust fumes into the car. Being in upstate New York in the worst part of winter, I also used a Coleman catalytic heater. I built a box to hold it on the passenger side floor to quickly warm the car, but it gave off fumes too, but it did heat the car.
The photo below is not me, I think the ladder works better with an assistant raising and lowering the end of the ladder as needed to align the engine back. He’s working alone and the trying to balance the engine on the jack and get it aligned up again.