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"The BMW four-cylinder unit which powered Nelson Piquet to victory in 1983 produced 1250 HP with certainty, and optimists even spoke of 1300 and 1400 horsepower!" -- http://www.atlasf1.com/evolution/1980s.html
The author is speaking of a 1.5 litre engine, by the way. So yes, it is certainly possible to get 450 hp out of a 4-cyl. In fact, BMW tripled that nearly 20 years ago.
The moral of my 2 cents is this: any manufacturer can tune even the smallest of engines to get outrageous numbers. Most don't. Why? Drivability, insurance costs, economy, reliability (I'm sure some other factors I'm not including) all suffer. Volvo built the 850's engines well below any true performance threshold for all these reasons, not because of displacement or number of cylinders. It wasn't a contest.
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