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Murricans... am-i-right?
But seriously... 60 hp is pretty slow for typical US highway speeds, though it's acceptable for urban traffic. Micro-cars with about 60-75 hp get from 0-30 mph in a respectable amount of time (similar to bigger engined cars). It's that slog from 30-60 mph that's the killer.
Then again, people who care about gas mileage really shouldn't be bothered by taking 15 to 18 seconds to hit 60 mph.
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One cheap engine that might be easy to swap in is the Suzuki K10. 1.0 3-cylinder. Around 65 hp, gets about 20 km/l (mixed) and over 30 km/l on highway runs... (nearly 80 mpg at a steady 50 mph in a standard Suzuki), and it's available in the Indian market Maruti Alto, which means less complicated body control and sensor crap to deal with when swapping, yet it is still EUROIV compliant.
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