An ICE is, funnily enough, a heat engine. So the efficiency is governed by the fundamentals of heat engines. So trying to optimise that is a good start. Best way of getting the thing to generate more power is to sweep more volume. If we have a fixed capacity engine, rev higher. Hard to beat that. An engine that won’t shake itself apart is a terrific start.
You can look to minimising losses in the engine. Of which there are lots. And funnily enough, for a hard revving engine, aerodynamic losses in the crankcase may matter. In the margins, but if you really care, it can help. Better production tolerances, higher quality oils, Lots of little gains. A surprising amount of a car engine’s power gets sucked up just keeping it turning.
Critically you look at combustion efficiency, and try to get at the energy in your fuel, although that isn’t a direct input into just total power. Very powerful engines may run particularly inefficiently. But for road cars, combustion efficiency has gone hand in hand with improved thermodynamic efficiency.
The fundamental thing with thermal efficiency is that that hotter your burn, the more energy you can get out of the combustion process. So a huge amount of work has gone into optimising fuel burn. This has been in concert with efforts to reduce air pollution and improve fuel efficiency. A modern high compression petrol engine with direct injection and stratified ignition is generations ahead of a carburettor with a coil and distributor, vacuum advance, and tuning done by ear with a screwdriver. The burn can be controlled with tiny nuances across the entire rev range. The fuel will almost all burn, and do so at as high a temperature as materials science will let it. Everything is a win. High performance electronics, especially engine management, that are able dynamically take into consideration the whole picture of the engine operations is a key enabler. Indeed for a long time the pacing item in being able to achieve these gains.
So four classes of optimisation:
Revs, thermal efficiency, combustion efficiency, losses.
As noted above, 1978 was probably the low in apparent engine performance. But a change to how power was measured and reported a few years earlier clipped at least a third off the reported numbers. But manufacturers really struggled to make their old clunkers work.