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Complexity of the modern diesel engine has increased to meet the stringent future emission regulations especially for NO (nitrogen oxide) and PM (particulate matter). Air management system including exhaust gas recirculation (EGR), turbocharger and variable valve actuation (VVA) must be optimized of its design and control algorithm for combustion improvement coupled with precision control of fuel injection. As a matter of course, the optimization of aftertreatment system is extremely important for the exhaust emissions reduction. In addition, improvement of fuel consumption is very important from the standpoint of response to energy security and reduction of CO₂ (carbon dioxide) emission as the greenhouse gas. However an enormous amount of energy will be required to develop such kind of the complex engine system by conventional actual testing.

An exhaust turbocharging system makes it possible to increase the brake mean effective pressure (BMEP) and lower emissions levels for a diesel engine while further improving the thermal efficiency. However, in order to meet future emission regulations, further reductions in NOx and particle matter (PM) emissions are necessary. In addition, the diesel engine should have further reductions in fuel consumption to reduce CO₂, which is one of the main greenhouse gases. Authors participated in a program for the comprehensive technological development of innovative, next-generation, low-pollution vehicles with the New Energy and Industrial Technology Development Organization (NEDO) from 2004 through 2008 in cooperation with the National Institute of Advanced Industrial Science and Technology (AIST). A low-emission and high-efficiency diesel engine system was developed to meet the target of NEDO project.