Can This Car Be Restored ?

I would probably further disassemble the unit and try evaporust and/or CLR on the metal parts - but I expect a restoration would be economically upside down.

Sure can.    Get a copy of the Operating and Maintenance Guide or pages for the #68.  Take out every screw that can be removed.  Clean off all the rust, paint and reassemble.  You cant do it without taking it apart.

or for less that $40 you can buy one already done and just say you did.

https://www.ebay.com/itm/Lione...7:g:noAAAOSwasNdfAhT

I don't know if it would be economically worth it. You are going to need a new pick-up assembly (available). The e-unit handle maybe cleaned, along with the frame and truck frames.

Those appear to be proper DeSoto wheel covers....

looks like some challenge....I love a challenge....best of luck,don't give up...joe

Yes, it can be restored.  My 1914 Model T was not recognizable as an automobile.  But, I spent more than $38,000 to build a $20,000 car.  I just had to do it.  My 1934 cabriolet was almost as bad.  There is tremendous satisfaction to be had.  How bad do you want to brag about before and after?

Bill

I second the Evapo-Rust.  I got a bunch of stuff from the Sandy floods in NY, much of it had been in saltwater soaked boxes for weeks.  I dunked whole chassis in Evapo-Rust, and managed to get three of four locomotives back in operation.  I ended up painting some of the chassis of K-Line and Lionel rolling stock, and the chassis of the Lionel locomotives, but none of the motors that were dunked in Evapo-Rust were damaged, all ran after the encounter. 

The only think that didn't like the Evapo-Rust was the copper-colored alloy used for some K-Line wheelsets, it ate them right up.  Must have looked like rust to the chemicals in Evapo-Rust.   I replaced the wheelsets on those cars and all was well.