My friend, that is one sweet automobile and would cause quite a stir at a car show even in the USA. By the way, check out Coker tires, they specialize in vintage replacement tires and should have them in your size. And yes, they have the big white wall as well, even in radial.
I take it you have a back ground in both engineering and manufacturing to design and build that tonearm. Not an easy feat by any means.
What are you using to measure the displacement of the arm, a laser? Another method is to use a metal target and measure the capacitance between the tonearm and target. That would have to be converted to a digital value for the control board using a ADC.
The emergence of CD's killed all the development that was going on in Japan for the best TT back in the early 80's. It was a race between manufactures and a source for much pride. Tables such as my Yamaha PX-3 were the last dying gasp, a shame because we were cheated out of the designs that the best engineers had to offer. I believe that you showed us what would have come forth if the CD revolution hadn't arrived. My hat is off to you sir!
BillWojo