160? Dude, we must be talking about different engines.
here are some dyno sheets from a '94 Amigo with the 2.6l 4ZE1:
http://www.houlster.com/amigo/turbo/dynoruns.htm Before turbo, it didn't even put 100 HP to the wheels.
You're right about the bottom end, though...tough as nails.
Either way, this engine won't swap into anything but another 'Zu with a 4Z series engine.
So, if I may try to steer this back on-topic for BMWs...isn't it amazing what a little more sophistication in design/engineering can do for an engine?
1.9l BMW M44 = 138 HP
2.6l 'Zu 4ZE1 = 125 HP
Phil