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The driving simulator is a computer-controlled tool to study the interface between driver and vehicle response under simulated traffic conditions. It permits a controllable, reproducible and cost-effective study of vehicle parameters up to the limits of active safety under non-dangerous conditions. It also permits driver participation in judging vehicle handling characteristics, and in evaluating the ‘feel’ of the steering, suspension, braking, and drive train, including the driver's environment, beginning with the initial vehicle design stages. The paper will describe fully the concept, design and planned activities as well as report on the new possibilities of using the driving simulator as a research and development tool.