I'm no expert, but I would guess that by adding a turbo and LOTS of other expensive modifications you could make it competitive in SMF (Street Modified FWD). You'd need very wide rims (10-inches) and fresh rubber (Hoosier 275/35/15) as well as good quality shocks ($4000) and lots of tuning with springs, sway bars, etc.... Street Modified is a very high level (high $$$) class nationally. Locally, you wouldn't need this high of a prep level. Of course that depends on who your competition is locally. :)
No.... it won't be competitive with any amount of money thrown at it. Other cars in the class have the same amount of money and modification but start on a base MUCH smaller and 800lbs lighter... no hope. Don't waste your time or money. Run the car in G-Stock where it can be competitive or you need to start with a different base if you want to piss your money away in SM.