A stock VW TDI has ~90 hp and can be (relatively) easily be bumped up another 30 or more hp... so seems like a good match power-wise. Of course, it wouldn't be a straightforward swap (FWD to RWD, electronics, etc) but there are quite a few examples on the interwebs (
Easy Jeep VW TDI Diesel Swap | Editorials Blog & Discussion at Jp Magazine (caution, ads!),
85 4runner VW 1.9 AFN M-TDI swap - YotaTech Forums,
TDI Conversions - TDIClub Forums)