Nissan made the 240sx. It had something like 160hp and 155ft/lb tq in a 2.4 liter 4cylinder.
VW made a 1.8L that put out 180hp and 180ft/lb tq.
That's not even apples and oranges, that's apples and... table saws.
It's not that Nissan couldn't (quite easily) get more power out of it, they just didn't. It's a low-compression engine, which makes it very reliable and capable of being turbocharged without having to make a lot of modifications to
keep it reliable. Most people agree that it's capable of about 300hp, with a turbocharger, without having to make any other modifications to keep it reliable.
What's more, a 240sx gives you power half-way through the rev-range, where a dinky 1.8L in a VW will have a stretch until its last 1,000 RPM until you get any usable power.
Bigger doesn't always mean better performance.
I guess you've never heard, "there is no replacement for displacement"
Sure, you can boost a Supra until it has as much power as a Bugatti Veyron, but the Supra will have its doors handed to it at the end of the race, in no small part because the Veyron's engine is over twice the size.