I'm looking fuel economy of 45mpg (uk gallons) on highway and not worse than 35mpg on city.
That should be near Ford Focus level (when that f**d has a good day), bit better than Focus is actually what I would like to get but it is maybe not very possible, 16 valves, variable cam timing, FWD having few % less losses, coefficient of drag is 0.32 for focus when 300 has 0.38, but Focus weights 150-200kg more.
2ltr engine is perhaps out ruled from this as it really is not capable of running extreme lean mixtures too well and if smaller engine can run leaner while still producing 30hp with part throttle then it will be more economical than big engine.
So this means that there is 1.4 and 1.7 engines left.
Now as we know turbo engine is far superior in terms of efficiency when compared to NA engine of same power output, specially fuel consumption is much less because of how turbo works, you get basically several sized engines in one package.
Also as we know, modern engine management can do much better than carbs, because of ignition and injection can be adjusted based to temperature and load, quite well, also knock sensing allows us to try to get that last efficiency % out from engine.
I was thinking about small turbo, mostly because of quick spool up and less losses, no point to get that caterpillar's turbo for 130hp

Maybe something like in Fiat Uno Turbo should do the job.
Intercooler is a must of course.
Intake and exhaust manifolds + downpipe are needed to be made as custom work, I believe?
Engine management would be Megasquirt with possible COP ignition.
I'm sure many of you have read about VW's new 1,4l dual charged engine, it has CR of 10 and boost of 2.5 bars, which could sound impossible when first time heard, but it is quite possible.
Now this engine has direct injection, I think that is then reason why this is possible?
So with our limited resources, funding and skill it is perhaps not too realistic to get to that level, but aim could be to get less fuel consumption as possible while still getting better performance than stock GLT.
Now this is just theoretical planning, which is aimed to do so that if there would be funding it would be possible to be made, so I plan to make some budgeting and lot of calculations

First is needed to decide which model it is going to be where this is going to be built from.
I wish to get ideas and comments then and specially as I don't know too well these 1.4&1.7 340s engines so I may have some gaps there as well.