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Tier 2 Emission standards enacted by the U.S. Environmental Protection Agency (EPA) require substantial emission reductions for new vehicles, including those with diesel engines. The standards are fuel neutral, and all light duty vehicles must eventually meet a fleet averaged emission level of Bin 5. To improve the emission capability for diesel engines, several advanced technologies have been investigated. These technologies include: common rail FIE with multi-injection capability, enhanced cooled EGR system with increased flow capability, variable geometry turbo charger, and a lower compression ratio piston. A new combustion approach using premixed diesel combustion was applied in the low load area for improving NOx and soot emissions significantly in the FTP-75 test cycle. Applying these technologies, engine out NOx was substantially reduced while maintaining similar soot levels.