I dont think reducing gear would make the engine break but the gear problaly would the engine could have damage depend of their engineering ... this case is to much complex, need information and study on that... would be more then awesome having gears broked up and winning a race like Senna did on interlagos. But i think this would need to much precision to happen, you really will have to create all car peaces and create your own car, i dont think the manufactures will let this happen with a low cost or even let this happen... so is out of the question but would be by far the most awesome thing on a race game broke physcally a gear or the steering box only by stress and other thing i noticed that is out of the main thing of the post... the fuel consuption is not based on the engine work but on the distance you travel... this is wrong and engine temperature... would be nice if you are just accelarating your car on the neutral gear and you start to notice the raddiators starting to work
Its related to how much it revs and deplenishes regardless of the vehicle being in gear or moving or not. Not entirely sure how accurate it is, but it seems a reasonable simulation. This is easy to prove btw, stick the car in nuetral, rev it and watch the fuel counter on the debug screens, drains quicker when being revved than when not being revved.