Three Japanese automobile manufacturers-Mitsubishi Motors Corp., Nissan Motor Co., Ltd., and Toyo Kogyo Co., Ltd.-have been making efforts over the past three years to design and develop effective thermal reactor-exhaust gas recirculation and catalytic converter systems suitable for small engines. The work is being done by members participating in the IIEC (Inter-Industry Emission Control) Program, and the exhaust emission levels of the concept vehicles developed by these companies have met the goal established by the IIEC Program at low mileage. Each system, however, has a characteristic relationship between exhaust emission level and loss of fuel economy. Much investigation is required, particularly with respect to durability, before any system that will fully satisfy all service requirements can be completed. This paper reports the progress of research and development of the individual concept vehicles.